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Temporary contracts: an analysis of the North-South gap in Italy

Author

Listed:
  • Silvia Camussi

    (Bank of Italy)

  • Fabrizio Colonna

    (Bank of Italy)

  • Francesca Modena

    (Bank of Italy)

Abstract

In Italy the incidence of temporary employment significantly varies across areas, being on average significantly higher in southern regions. Using a unique source of administrative data we show that the gap doesn't accrue from differences in firms' hiring strategies: as a matter of fact workers are initially hired on a temporary basis more often in the North. The largest share of fixed-term contracts in the South reflects instead (i) the lower probability that they are eventually converted into an open-ended one and (ii) the lower duration of permanent positions.

Suggested Citation

  • Silvia Camussi & Fabrizio Colonna & Francesca Modena, 2022. "Temporary contracts: an analysis of the North-South gap in Italy," Questioni di Economia e Finanza (Occasional Papers) 707, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_707_22
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    References listed on IDEAS

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    More about this item

    Keywords

    temporary contracts; contract duration; transformation rate; Italy;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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