More flexible, less productive? The impact of employment protection legislation reforms in Italy

Abstract

ABSTRACT Through a meta-analysis of all publicly available research over a span of 25 years, the article assesses the productivity impact of the employment protection legislation reforms that have been introduced in Italy since 1997. European Union institutions and domestic reformers advocated the reforms in order to increase the competitiveness and productivity of the Italian economy. Yet, by incentivising temporary employment, the reforms have favoured competitive strategies that have reduced the productivity of the country’s firms.