Young people, the disabled, and immigrant workers: An introduction and some policy recommendations

an article by Giuliana Parodi, (University of Chieti-Pescara, Italy) and Francesco Pastore, (Seconda Università di Napoli and IZA Bonn, Naples, Italy) published in International Journal of Manpower Volume 33 Issue 1 (2012)
Abstract

Purpose
The purpose of this paper is to introduce the special issue on “Disadvantaged workers in the labour market” and to draw some policy implications that are common to the studies included in the special issue.
Design/methodology/approach
The paper introduces several econometric methodologies adopted in the special issue. Such methodologies represent an excellent overview of the typical approaches developed by applied economists to address the issue under discussion. They include: dynamic probit models allowing for unobserved heterogeneity and endogenous initial conditions; propensity score matching; the non parametric Ñopo decomposition to take into account sample selection bias; endogenous switching models to estimate employment choice; and fixed effects models and Arellano and Bond dynamic panel estimator.
Findings
The articles in the special issue highlight several common factors that make the disadvantage at the labor market emerge. The first factor is the recent financial crisis which especially affects young people. Differences in common support – generally due to segregation in low pay jobs – are also important. Several factors favor persistence of the disadvantage, namely the inefficiency of the educational system and the lack of financial support to the weakest groups.
Practical implications
The paper adopts the EU definition of “disadvantaged workers”, namely workers who find it hard to enter the labor market without assistance. The authors show the relevance of the analysis produced in this special issue to design specific policies fine-tuned to the needs of disadvantaged workers. In addition, institutional reforms, and/or interventions on structural variables are also in order.
Originality/value
The paper introduces a number of articles proposing innovations in the interpretation and application of a wide range of theoretical approaches and econometric methodologies.

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