This proposal presents a study of the EXODUS of exceptionally gifted individuals due to the increased utilization of short-term contracts. The primary objective is to study the impact of Italian labour market reforms, specifically those related to the regulation and utilization of short-term employment contracts, on the departure of skilled workers towards other countries, which typically offer more and better opportunities (brain drain).
Theoretically, the utilization of short-term contracts could help increase labor force participation, employment, efficiency and labour market opportunities. However, if not regulated in integration with the specific institutional framework, short-term contracts might generate undesired effects. By promoting adverse selection, driving the better workers away from the mother country as the less productive workers take up short-term contracts, short-term contracts might actually increase the brain drain. The purpose of EXODUS is to investigate the validity of these concerns and to analyze the way short-term contracts affect the brain drain phenomenon. In particular, EXODUS will focus on investigating the employment condition and behavioral choices of a specific category of workers: young individuals with a high level of education.
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