Patterns of Labour Market Entry - Long Wait or Career Instability? An Empirical Comparison of Italy, Great Britain and West Germany

Abstract

Current discussion in Europe focuses closely on (partial) labour market de-regulation as a means to combat constantly high (youth) unemployment. The paper argues that this perspective is too narrow and fails to account for existing national institutional differences. It suggests that the focus should instead be on a combination of different institutional settings, rather than on single aspects. This general issue is approached by investigating the labour market entry process and its determinants in three European countries: West Germany, Italy and Great Britain. These countries differ substantially in their combinations of relevant institutional aspects: labour market regulation, and the education and training systems. Consequently, they display three distinct patterns of labour market entry. Great Britain is characterised by rapid but rather unstable market entry, whilst market entry in Germany is also rapid but relatively stable. The main problems exist in Italy, where first job searches are very protracted. However, once jobs have been found, they are rather stable. Despite substantial deregulation efforts in Italy over the past decade, this situation has changed little.