The restrictive legislation on recruitment in Italy is a well‐known example of state control of a labour market; the means Italian companies employ to get round the legislation is, if anything, even more interesting. Problems are recognised by the government and in mid‐1991 the legislation was “reformed”. A detailed study of the working of the old legislation and the situation which led to its reform concludes that although the latest law is a step forward it amounts to a missed opportunity.
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