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The Effect of a Longer Eligibility to a Labour Market Programme for Dismissed Workers
Author(s) -
Paggiaro Adriano,
Rettore Enrico,
Trivellato Ugo
Publication year - 2009
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.2008.00446.x
Subject(s) - regression discontinuity design , dismissal , duration (music) , bridge (graph theory) , economics , set (abstract data type) , demographic economics , panel data , labour economics , actuarial science , econometrics , medicine , political science , computer science , law , art , literature , programming language , pathology
Liste di Mobilità is an Italian programme targeted to dismissed workers. It combines a ‘passive’ and an ‘active’ component. Eligibility duration varies with the worker's age at dismissal. Using a new panel data set, we identify the impact of extending the duration of eligibility on re‐employment probabilities and wages, via Regression Discontinuity Design. We validate the design by a set of overidentification tests. For most subgroups we find no significant impact, with a peculiar pattern for women entitled to monetary benefits. A major negative impact emerges for workers aged 50 or more granted monetary benefits, likely due to the fact that they can use the programme as a bridge to retirement.