Labour Market Flexibilization and its Consequences in Italy

Abstract

Labor market ‘flexibilization’ or ‘deregulation’ is seen by many as a requirement for economic and occupational growth. As one route towards more flexibility, many European countries increased the so-called atypical or non-standard forms of employment while leaving the regulation of existing employment relations largely unchanged. In Italy, this led to a strong segmentation of the labour market. As employment is the only connection to a series of welfare entitlements, this praxis might lead to strong cleavages in the society. In this paper, we investigate the ongoing process of labour market ‘flexibilization’ and its consequences for individual labour market careers and social inequalities and ask whether the deregulation has fulfilled the expectations attached to it. In detail, we study the entries into the marginal labour market and the consequences for employment careers of these forms of ‘new’ flexible employment. Empirical findings based on Indagine Longitudinale sulle Famiglie Italiane data cast doubts on the effectiveness of the specific form of market deregulation in Italy and confirm strong long-term implications of atypical employment episodes for career chances.