DP1712 Job Tenure and Labour Market Regulation: A Comparison of Britain and Italy using Micro Data

Author(s): Simon Burgess, Lia Pacelli, Hedley Rees
Publication Date: October 1997
Keyword(s): Job Tenure, Labour Market Regulation
JEL(s): J60, J68
Programme Areas: Human Resources
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=1712

Given a general belief that jobs last longer in tightly regulated labour markets, the presumption would be that jobs last longer in Italy than they do in Britain. We use two large micro datasets to address this issue. Surprisingly, we find a higher proportion of male workers in Britain than in Italy are in jobs that have lasted at least five years. This result holds conditioning on individual control variables. We find the opposite result for women, but there are reasons for treating this with some scepticism. This result suggests a complex relationship between labour market institutions and the reallocation of labour.