Labour Market Transitions During the Financial Crisis in Italy

The aim of this paper is to evaluate the consequences of the financial crisis on the Italian labour market by analysing the determinants of individuals' transitions between occupational states. For this purpose, we use micro-data from the ISTAT Labour Force Survey, a repeated cross-section dataset. In order to identify the determinants of transitions, two strategies are followed: firstly, we consider the "perceived" employment condition, available at the individual level for the previous year. Then, following the "ecological inference" approach, we get quarterly transition probabilities for the "official" employment condition. The economic crisis has mostly penalized young, migrants, men, and people living in the North as well as couples without children and single parents with children.