Fixed-term contracts have been used in many European countries to reduce firms' firing costs. In this paper we evaluate the size of these costs by measuring firms' willingness to trade fixed-term for open-ended contracts in exchange for a cut in the labor cost of permanent jobs. Our results are...

We estimate the private (individual) and social return to schooling in Italy and four macro regions. Our estimates take into account the effects of schooling on employment and wages as well as the key features of the Italian tax and social insurance system. We find that the individual return to...

We provide new evidence on the impact of peer effects on the schooling decisions of teenagers. In November 1980 a major earthquake hit Southern Italy. In the aftermath, young men from certain towns were exempted from compulsory military service. We show that the exemption raised high school...