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Italy: From Economic Decline to the Current crisis

Author

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  • Pasquale Tridico
Abstract
The objective of this paper is to show that the current global economic crisis, in which also Italy fell in 2008, represents just the last step of a long declining path for the Italian economy which began in the nineties, or to be more precise in 1992and 1993. In particular, I argue the reasons which explain the long Italian decline, and partly also the deeper recession today, as well as the lack of recovery from the current crisis, can be found in the past reforms of the labour market. In particular the labour flexibility introduced in the last 15 years, which had, along with other policies introduced in parallel, cumulative negative consequences on the inequality, on the consumption, on the aggregate demand, on the labour productivity and on the GDP dynamics.

Suggested Citation

  • Pasquale Tridico, 2013. "Italy: From Economic Decline to the Current crisis," Departmental Working Papers of Economics - University 'Roma Tre' 0173, Department of Economics - University Roma Tre.
    • Handle: RePEc:rtr:wpaper:0173
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    References listed on IDEAS

    as
    1. Jean-Paul Fitoussi & Francesco Saraceno, 2010. "Inequality and macroeconomic performance," Working Papers hal-01069429, HAL.
    2. Pasquale TRIDICO, 2013. "The impact of the economic crisis on EU labour markets: A comparative perspective," International Labour Review, International Labour Organization, vol. 152(2), pages 175-190, June.
    3. Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 879-907.
    4. Leonello Tronti & Francesca Ceccato, 2005. "Il lavoro atipico in Italia: caratteristiche, diffusione e dinamica," ARGOMENTI, FrancoAngeli Editore, vol. 2005(14).
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    8. Alfred Kleinknecht & C.W.M. Naastepad, 2005. "The Netherlands: Failure of a neo-classical policy agenda," European Planning Studies, Taylor & Francis Journals, vol. 13(8), pages 1193-1203, July.
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    11. Jean-Paul Fitoussi & Joseph Stiglitz, 2009. "THE SHADOW GN*: The Ways Out of the Crisis and the Builbing of a More Cohesive World," Working Papers hal-01066209, HAL.
    12. Roberto Torrini, 2005. "Quota dei profitti e redditività del capitale in Italia: un tentativo di interpretazione," Politica economica, Società editrice il Mulino, issue 1, pages 7-42.
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    15. Pasquale Tridico, 2007. "Flessibilità e istituzioni nel mercato del lavoro: dagli economisti classici agli economisti istituzionalisti," Working Papers 0706, CREI Università degli Studi Roma Tre, revised 2007.
    16. Pasquale Tridico, 2009. "Flessibilità e istituzioni nel mercato del lavoro: dagli economisti classici agli istituzionalisti," Economia & lavoro, Carocci editore, issue 1, pages 113-113.
    17. Raffaele Miniaci & Guglielmo Weber, 1999. "The Italian Recession Of 1993: Aggregate Implications Of Microeconomic Evidence," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 237-249, May.
    18. Marco Lilla, 2005. "Disuguaglianze salariali in Italia: nuove evidenze dai microdati SHIW," Politica economica, Società editrice il Mulino, issue 1, pages 71-102.
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    Cited by:

    1. Jacopo Zotti, 2015. "The Long Italian Stagnation and the Welfare Effects of Outsourcing," Working Papers 2015.105, Fondazione Eni Enrico Mattei.
    2. Guglielmo Forges Davanzati & Lucia Mongelli, 2017. "Does Rising Unemployment Lead To Policies Of Labour Flexibility? The Italian Case (1990 – 2013)," Working Papers 0026, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    3. Marcelo Vieta, 2015. "The Italian Road to Creating Worker Cooperatives from Worker Buyouts: Italy s Worker-Recuperated Enterprises and the Legge Marcora Framework," Euricse Working Papers 1578, Euricse (European Research Institute on Cooperative and Social Enterprises).

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    More about this item

    Keywords

    Labour market; labour policies; income distribution; productivity; wage; crisis;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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