Abstract

This article focuses on the impact of temporary work legislation on employment in Italy using the quantitative tools of impact analysis. During the last ten years, Italy registered a high growth in employment without, in a few years, a significant economic growth. Many analysts indicate the introduction of flexible jobs as the cause of employment growth. However, few researchers have established a causal relationship between labour market flexibility and positive employment trends through a counterfactual framework. The paper presents a counterfactual model to estimate the effect on employment of introducing temporary work in 1997.