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Tax Credit Policy and Firms Behaviour: The Case of Subsidy to Open-End Labour Contract in Italy
The authors look at a recent Italian policy designed to foster hiring with open-end rather than with fixed-term contracts. Results indicate that most of the financial support was wasted because of the large dead-weight loss associated to the program.
Link
http://www.bancaditalia.it/ricerca/consultazioni/temidi/td03/td471/td_471/tema_471_03.pdf