Simulating the enforcement policies for irregular sector in the Italian labour reform

Bonaventura, Luigi (2006): Simulating the enforcement policies for irregular sector in the Italian labour reform.

Abstract

In this paper an agent-based model (abm) will be used to study the effects of enforcement policy in Italy: d.lgs. 124/2004. Three kinds of policy will be tested in the model: control, sanction and legitimacy-regulation. The first policy is based on the number of inspectors present in the economy; the second is defined by the magnitude of punishment; the third is measured by the social legitimacy of regulation. This simulation has produced a number of results, the most important of which are: the negligible influence of control increasing to enforce irregularity; the strong influence of the level of punishment on the irregularity ratio in all Italian areas; the good political choice to increase the social legitimacy to regulation in promoting regularity.

• Item Type: MPRA Paper
• Institution: Department of Economics and Quantitative Methods
• Language: English
• Keywords: enforcement policies; irregular sector; agent-based model
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C63 - Computational Techniques ; Simulation Modeling; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements; K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K42 - Illegal Behavior and the Enforcement of Law; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E61 - Policy Objectives ; Policy Designs and Consistency ; Policy Coordination