Abstract

Notably, the pension reform - largely known as the Fornero reform - has had some negative consequences; as a result flexible retirement was recently moved to the front burner in the Italian debate. Many argue that keeping older workers in the labour market reduces employment opportunities for young people. Within this context, the recent Poletti-Padoan legislative act allows private sector workers to change their full-time into a part-time contract, without entirely cutting off their salary for un-worked hours. The aim of the measure is to reduce employer's labour costs and stimulate youth employment, but a number of open questions remain.