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The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships

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  • ALBANESE Andrea
  • CAPPELLARI Lorenzo
  • LEONARDI Marco

Abstract

This paper estimates the causal effects of the 2003 reform of the Italian apprenticeship contract which aimed at introducing the “dual system” in Italy by allowing on-the-job training. The reform also increased the age eligibility of the apprenticeship contract and introduced a minimum floor to apprentices’ wages. Using administrative data and balancing techniques we find that five years after hiring, the new contract improves the chances of moving to a permanent job in the same firm, yet this happens mostly in large firms. There are also sizeable long-run wage effects of the reform, well beyond the legal duration of apprenticeships, compatible with increased human capital accumulation probably due to the training provisions of the reform.

Suggested Citation

  • ALBANESE Andrea & CAPPELLARI Lorenzo & LEONARDI Marco, 2017. "The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships," LISER Working Paper Series 2017-13, Luxembourg Institute of Socio-Economic Research (LISER).
    • Handle: RePEc:irs:cepswp:2017-13
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    More about this item

    Keywords

    Apprenticeship; Permanent Work; Youth Employment; Covariate Balancing Propensity Score;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • 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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