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Temporary Contracts and Transitions to Stable Jobs in Italy

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  • Matteo Picchio

Abstract

. This paper evaluates whether and to what extent temporary jobs have been springboards to stable jobs in Italy. Using the 2000, 2002, and 2004 waves of the Survey of Italian Households' Income and Wealth, several dynamic unobserved effects probit models for the probability of having a permanent job are estimated. The main result is that a temporary job, rather than unemployment, significantly increases the probability of having a permanent job 2 years later by about 13.5–16 percentage points. The robustness of this stepping‐stone effect is then assessed relaxing parametric assumptions on the unobserved individual heterogeneity distribution.

Suggested Citation

  • Matteo Picchio, 2008. "Temporary Contracts and Transitions to Stable Jobs in Italy," LABOUR, CEIS, vol. 22(s1), pages 147-174, June.
    • Handle: RePEc:bla:labour:v:22:y:2008:i:s1:p:147-174
    DOI: 10.1111/j.1467-9914.2008.00415.x
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    1. Matteo, PICCHIO, 2006. "Wage Differentials and Temporary Jobs in Italy," Discussion Papers (ECON - Département des Sciences Economiques) 2006033, Université catholique de Louvain, Département des Sciences Economiques.
    2. David H. Autor & Susan N. Houseman, 2010. "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 96-128, July.
    3. Hagen, Tobias, 2003. "Do Fixed-Term Contracts Increase the Long-Term Employment Opportunities of the Unemployed?," ZEW Discussion Papers 03-49, ZEW - Leibniz Centre for European Economic Research.
    4. Marloes de Graaf-Zijl & Gerard van den Berg & Arjan Heyma, 2011. "Stepping stones for the unemployed: the effect of temporary jobs on the duration until (regular) work," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 107-139, January.
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