Agenda

28 Gen 2026 12:15

Nello Esposito (University of Naples, Federico II)

Meeting Room 1, San Giobbe Economics Campus + online

 

Nello Esposito (University of Naples, Federico II) - Employment Protection and Consumption: Evidence from Italy

Abstract:

Leveraging an Italian labour market reform known as the Jobs Act (JA), I study the effect of employment risk on household consumption and labour supply. The JA reduced protection against unlawful individual termination only for workers hired after March 6, 2015, by firms with at least 15 employees. Using this time-based discontinuity in employment protection as a source of exogenous variation in employment risk, I find that workers subject to the reform consume 8% less than workers hired before March 6, 2015. The effect is stronger among individuals younger than 40 and for those living in Northern Italy, the wealthiest region of the country. There is, on the other hand, no sizable effect on labour supply. Finally, I show that a variant of the Bewley–Huggett–Aiyagari model, augmented with ex-ante employment risk heterogeneity, qualitatively matches the empirical result, and that risk accounts for a sizable part of the effect.

 

The seminar can be attended also remotely, connecting to ZOOM.

Link Zoom: bit.ly/insem-2425
ID riunione:  880 2639 9452
Passcode: InSem-2425

Lingua

L'evento si terrà in inglese

Organizzatore

Department of Economics (InSeminars)

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