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Does Apprenticeship Improve Job Opportunities? A Regression Discontinuity Approach

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  • Matteo PICCHIO

    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Stefano STAFFOLANI

    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

Abstract

In Italy the reforms of the last twenty years shaped a dual labour market with different levels of employment protection for permanent jobs, on one side, and temporary jobs like apprenticeships and fixed-term contracts, on the other side. The main difference between apprentices and other types of temporary workers is that the former should receive firm-provided training. The firm incentive in hiring apprentices consists in the possibility to pay lower wages and in a reduction in labour taxes. Using an Italian administrative longitudinal dataset containing information on all the job contracts started between January 2009 and June 2012, we estimate hazard functions towards permanent jobs and contrast the ones of apprentices with those of other types of temporary workers. The hazard function estimates based on a regression discontinuity approach affirm that apprenticeships are sorts of "long entrance halls" towards open-ended contracts, especially within the same firm where the apprenticeship was performed.
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  • Matteo PICCHIO & Stefano STAFFOLANI, 2013. "Does Apprenticeship Improve Job Opportunities? A Regression Discontinuity Approach," Working Papers 393, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:393
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    Cited by:

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    2. Andrea Albanese & Lorenzo Cappellari & Marco Leonardi, 2021. "The effects of youth labour market reforms: evidence from Italian apprenticeships," Oxford Economic Papers, Oxford University Press, vol. 73(1), pages 98-121.
    3. Filomena, Mattia & Picchio, Matteo, 2021. "Are Temporary Jobs Stepping Stones or Dead Ends? A Meta-Analytical Review of the Literature," IZA Discussion Papers 14367, Institute of Labor Economics (IZA).
    4. Maria Giovanna Bosco & Elisa Valeriani, 2017. "From temporary to permanent jobs: a stepping stone analysis for Emilia Romagna," EcoMod2017 10474, EcoMod.
    5. Mattia Filomena & Isabella Giorgetti & Matteo Picchio, 2022. "Off To A Bad Start: Youth Nonemployment And Labor Market Outcomes Later In Life," Working Papers 466, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    6. Massimiliano Bratti & Corinna Ghirelli & Enkelejda Havari & Giulia Santangelo, 2022. "Vocational training for unemployed youth in Latvia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 677-717, April.
    7. Dughera, Stefano & Quatraro,Francesco & Ricci,Andrea & Vittori,Claudia, 2021. "For the rest of our lives: Flexibility and innovation in Italy," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202115, University of Turin.
    8. Chiara Gigliarano & Francesco Chelli, 2016. "Measuring inter-temporal intragenerational mobility: an application to the Italian labour market," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 89-102, January.
    9. Giorgio d'Agostino & Michele Raitano & Margherita Scarlato, 2022. "Job mobility and heterogeneous returns to apprenticeship training in Italy," British Journal of Industrial Relations, London School of Economics, vol. 60(2), pages 391-423, June.
    10. Marco Bee & Julien Hambuckers, 2020. "Modeling multivariate operational losses via copula-based distributions with g-and-h marginals," DEM Working Papers 2020/3, Department of Economics and Management.
    11. Gnocato, Nicolò & Modena, Francesca & Tomasi, Chiara, 2020. "Labor market reforms and allocative efficiency in Italy," Labour Economics, Elsevier, vol. 67(C).
    12. Matteo Picchio & Stefano Staffolani, 2019. "Does apprenticeship improve job opportunities? A regression discontinuity approach," Empirical Economics, Springer, vol. 56(1), pages 23-60, January.
    13. Federico Quaresima & Fabio Fiorillo & Raffaella Santolini, 2018. "Does Political Affiliation Matter On Post-Parliamentary Careers In The Boards Of Public Enterprises?," Working Papers 429, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    14. Corinna Ghirelli & Enkelejda Havari & Giulia Santangelo & Marta Scettri, 2019. "Does on-the-job training help graduates find a job? Evidence from an Italian region," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(3), pages 500-524, February.
    15. Pieroni, Luca & d’Agostino, Giorgio & Lanari, Donatella & Scarlato, Margherita, 2023. "Temporary employment and fertility in Italy: The effect of two labor market reforms in the early 2000s," Economic Modelling, Elsevier, vol. 124(C).
    16. Chiara Gigliarano & Francesco Maria Chelli, 2014. "A nonparametric Gini concentration test for labour market analysis," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 68(3-4), pages 135-142, July-Dece.
    17. Corseuil, Carlos Henrique & Foguel, Miguel N. & Gonzaga, Gustavo, 2019. "Apprenticeship as a stepping stone to better jobs: Evidence from Brazilian matched employer-employee data," Labour Economics, Elsevier, vol. 57(C), pages 177-194.
    18. José Luis Viveros Añorve, 2015. "Towards a more effective poverty reduction in Mexico: a general equilibrium assessment," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 4(1), pages 75-107, March.
    19. Regina T. Riphahn & Michael Zibrowius, 2015. "Apprenticeship, Vocational Training and Early Labor Market Outcomes - in East and West Germany," SOEPpapers on Multidisciplinary Panel Data Research 743, DIW Berlin, The German Socio-Economic Panel (SOEP).
    20. Maria Giovanna Bosco & Elisa Valeriani, 2018. "The Road to Permanent Work in Italy: “It’s Getting Dark, Too Dark to See”," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(3), pages 385-419, November.
    21. Begoña Cueto Iglesias & Fermín López Rodríguez, 2019. "The Apprenticeship Contract: An Evaluation," Hacienda Pública Española, IEF, vol. 231(4), pages 15-39, December.
    22. d'Agostino, Giorgio & Pieroni, Luca & Scarlato, Margherita, 2015. "Revisiting the Effects of Enhanced Flexibility on the Italian Labour Market," MPRA Paper 63239, University Library of Munich, Germany.
    23. Quaresima Federico & Santolini Raffaella & Fiorillo Fabio, 2020. "Political affiliation in post-parliamentary careers in Italian public enterprises," German Economic Review, De Gruyter, vol. 21(1), pages 35-64, April.

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    More about this item

    Keywords

    Apprenticeship; hazard function; permanent work; regression discontinuity; temporary work;
    All these keywords.

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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