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Temporary Work Agencies in Italy: A Springboard Toward Permanent Employment?

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Author Info
Andrea Ichino () (University of Bologna, CEPR, CESifo and IZA)
Fabrizia Mealli () (University of Florence)
Tommaso Nannicini () (European University Institute)

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Abstract

This paper measures to what extent Temporary Work Agency (TWA) employment creates a "springboard" toward permanent jobs, or a "trap" of endless precariousness. Applying Propensity Score matching in the presence of choice-based sampling, we estimate the causal effect of the treatment "TWA assignment" on the outcome "finding a permanent job after 18 months". The data come trom Italy, where TWA employment was liberalized in 1997, and they were specifically collected for this evaluation study. We show that a TWA assignment increases the probability of finding a permanent job by 19 percentage points in Tuscany and by 11 percentage points in Sicily, although this second effect is only barely significant. These effects are large given that the observed baseline probabilities in the treated goup are respectively 31% and 23% in the two regions. This treatment effect is highly heterogeneous with respect to observable characteristics such as age, education and firm's sector.

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Publisher Info
Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 64 (2005)
Issue (Month): 1 (September)
Pages: 1-27
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Handle: RePEc:gde:journl:gde_v64_n1_p1-27

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Related research
Keywords: temporary employment; Italy; propensity score matching;

Find related papers by JEL classification:
C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages F189-F213, June. [Downloadable!] (restricted)
    Other versions:
  2. David H. Autor, 2000. "Outsourcing at Will: Unjust Dismissal Doctrine and the Growth of Temporary Help Employment," NBER Working Papers 7557, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Manski, Charles F & Lerman, Steven R, 1977. "The Estimation of Choice Probabilities from Choice Based Samples," Econometrica, Econometric Society, vol. 45(8), pages 1977-88, November. [Downloadable!] (restricted)
  4. Michael Kvasnicka, 2005. "Does Temporary Agency Work Provide a Stepping Stone to Regular Employment?," Labor and Demography 0510005, EconWPA. [Downloadable!]
    Other versions:
  5. Güell, Maia & Petrongolo, Barbara, 2003. "How Binding Are Legal Limits? Transitions from Temporary to Permanent Work in Spain," IZA Discussion Papers 782, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Zijl, Marloes & van den Berg, Gerard J. & Heyma, Arjan, 2004. "Stepping Stones for the Unemployed: The Effect of Temporary Jobs on the Duration until Regular Work," IZA Discussion Papers 1241, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Miguel A. Malo & Fernando Muñoz-Bullón, . "Temporary help agencies and the labour market biography: A sequences-oriented approach," Studies on the Spanish Economy 132, FEDEA. [Downloadable!]
  9. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November. [Downloadable!]
  10. Tommaso NANNICINI, 2004. "The Take-off of Temporary Employment in the Italian Labor Market," Economics Working Papers ECO2004/09, European University Institute. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. David Autor & Susan Houseman, 2005. "Do Temporary Help Jobs Improve Labor Market Outcomes
    for Low-Skilled Workers? Evidence from Random Assignments    ," Staff Working Papers 05-124, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  2. Sergio Destefanis & Raquel Fonseca, 2006. "Labour-Market Reforms and the Beveridge Curve. Some Macro Evidence for Italy," CSEF Working Papers 168, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy. [Downloadable!]
    Other versions:
  3. Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2008. "From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(3), pages 305-327. [Downloadable!]
    Other versions:
  4. Renato Faccini, 2008. "Reassessing Labor Market Reforms: Temporary Contracts as a Screening Device," Economics Working Papers ECO2008/27, European University Institute. [Downloadable!]
  5. Renato Faccini, 2007. "Unemployment and Within-Group Wage Inequality: Can Information Explain the Trade-Off?," Economics Working Papers ECO2007/14, European University Institute. [Downloadable!]
  6. repec:ese:iserwp: is not listed on IDEAS
  7. Tommaso Nannicini, 2004. "Temporary Workers: How Temporary Are They?," Economics Working Papers ECO2004/23, European University Institute. [Downloadable!]
  8. Michael Kvasnicka, 2008. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Working Papers 13843, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2007. "Temporary jobs: Port of entry, Trap, or just Unobserved Heterogeneity?," LABORatorio R. Revelli Working Papers Series 68, LABORatorio R. Revelli, Centre for Employment Studies. [Downloadable!]
  10. Dario Sciulli, 2006. "Making the Italian Labor Market More Flexible: An Evaluation of the Treu Reform," Economics Working Papers we063408, Universidad Carlos III, Departamento de Economía. [Downloadable!]
  11. Addison, John T. & Surfield, Christopher J., 2009. "Atypical Work and Employment Continuity," IZA Discussion Papers 4065, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  12. Sergio Destefanis, Raquel Fonseca, 2005. "Matching Efficiency and Labour Market Reform in Italy. A Macroeconometric Assessment," CELPE Discussion Papers 93, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy. [Downloadable!]
    Other versions:
  13. Michael Kvasnicka, 2005. "Does Temporary Agency Work Provide a Stepping Stone to Regular Employment?," SFB 649 Discussion Papers SFB649DP2005-031, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany. [Downloadable!]
    Other versions:
  14. David H. Autor & Susan Houseman, 2005. "Do Temporary Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from 'Work First'," NBER Working Papers 11743, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Catalina Amuedo-Dorantes & Miguel A. Malo & Fernando Muñoz-Bullón, 2006. "The Role of Temporary Help Agencies in Facilitating Temp-to-Perm Transitions," IZA Discussion Papers 2177, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Annamaria Simonazzi & Paola Villa & Federico Lucidi & Paolo Naticchioni, 2008. "Continuity and Change in the Italian Model: Italy’s Laborious Convergence towards the European Social Model," Working Papers 108, Sapienza University of Rome, Department of Public Economics. [Downloadable!]
  17. Caroleo, Floro Ernesto & Pastore, Francesco, 2009. "Le cause del (l’in-)successo lavorativo dei giovani
    [The determinants of youth success in the labour market]    ," MPRA Paper 14218, University Library of Munich, Germany. [Downloadable!]
  18. Catalina Amuedo-Dorantes & Miguel Malo & Fernando Muñoz-Bullón, 2008. "The Role of Temporary Help Agency Employment on Temp-to-Perm Transitions," Journal of Labor Research, Springer, vol. 29(2), pages 138-161, June. [Downloadable!] (restricted)
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