DiECO, Insubria University (@dieco.uninsubria.it)

VoxEU published a column based on a paper by Daniela Sonedda and Marco Francesconi (University of Essex) about labor market reforms and the rising cost of job loss. 👉 cepr.org/voxeu/column...

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Employment protection legislation reforms and the rising cost of job loss A widely cited argument in favour of easing employment protection rules is that greater flexibility in hiring and firing can lead to increased job matching efficiency and productivity, but this may come at a cost for certain groups of workers. This column examines the impact of the 2012 ‘Fornero Reform’ in Italy, which lowered the legal and financial risks associated with dismissals for employers in order to encourage firms to offer more open-ended contracts and thus help bridge the divide between permanent and temporary employment. In practice, the reform increased the cost of job loss, particularly for younger and more vulnerable workers. https://cepr.org/voxeu/columns/employment-protection-legislation-reforms-and-rising-cost-job-loss