Turnover costs in Italy: some preliminary evidence

A. Gavosto & P. Sestito
The paper addresses the issue of adjustment costs of employment. A new panel of about 290,000 Italian firms, drawn from the Social Security files, is used. Figures on employment are monthly, from 1985:1 to 1990:12, and cut across all sizes and sectors of the economy. Three hypotheses on adjustment costs have been considered: no cost, quadratic and fixed costs. Both parametric and non-parametric tests have been carried out to discriminate between the different models. Results...