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Patrik Vesan

This chapter analyzes some of the major labor reforms implemented by the Renzi government in 2015 in relation to youth employment, with reference to the Jobs Act. The strategy pursued by the executive has been to concentrate on combating the segmentation of the labor market by liberalizing individual and collective dismissals and by introducing a new type of contract, which offers a generous incentive for new permanent hires. The main goal of this strategy is to decrease the divisions between insiders and outsiders in the hope that this measure will encourage employers to stabilize workers, especially the younger ones, and invest in the development of human capital. Such a strategy, however, rests on weak foundations, which might call into question its effectiveness and with it the stability of Renzi’s leadership.

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Georg Picot and Arianna Tassinari

Reform of the labor market has long been an important and controversial policy area in Italy, and it was one of Matteo Renzi's core concerns when he took up the leadership of the Democratic Party. This chapter recounts the main changes in Italian labor market policy since the 1990s before discussing the Jobs Act, which started as a highly publicized reform project concentrating on changes to public employment services and unemployment benefits, but which the left strongly challenged when dismissal protection was later weakened.