A long-standing economic tradition maintains that labour supply reacts to market tightness; its sensitivity to job quality has received less attention. If firms hire workers with both temporary and open-ended contracts, does participation increase when more permanent jobs are available? We investigate this relationship within a policy evaluation framework; in particular, we examine how labour supply reacted in Italy to a recent subsidy in favour of open-ended contracts. This subsidy increased labour force participation by 1.4% in 2001 and 2.1% in 2002. This increase was concentrated on males aged 35-54, with a low or at most a secondary schooling level. Url or DOI http://www.jstor.org/stable/41954972 Authors Piero Cipollone Piero Corrado Di Maria Anita Guelfi Country Italy Publication Year 2004 Ranges Intervention Intervention Start Year 2001 Intervention End Year 2002 Evaluation Evaluation Start Year 2001 Evaluation End Year 2002 Policy field Employment incentives Private sector employment incentives Target group Labour market status Inactive Details Funding Source Other Outcome Variable Employment status Data Source Survey Evaluation Method DID
