Abstract

Among the many actions, the recent «Decreto lavoro» temporarily cuts the tax wedge for employees and deregulates temporary contracts and other minor forms of occasional work. On the one side, there is consensus on the incentives due to the high price inflation and wage stagnation; many even ask for making them structural. On the other side, the deregulation of temporary contracts grants firms trust as regards flexibility but give collective bargaining a central role. The neglect of the segmentation of the Italian labour market can undermine the expected counterbalance and weaken workers’ position.