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From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity?

Author

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  • Andrea Ichino

    (Department of Economics, University of Bologna, Bologna, Italy)

  • Fabrizia Mealli

    (Department of Statistics, University of Florence, Florence, Italy)

  • Tommaso Nannicini

    (Department of Economics, Universidad Carlos III de Madrid, Madrid, Spain)

Abstract

The diffusion of temporary work agency (TWA) jobs has led to a harsh policy debate and ambiguous empirical evidence. Results for the USA, based on quasi-experimental evidence, suggest that a TWA assignment decreases the probability of finding a stable job, while results for Europe, based on the conditional independence assumption (CIA), typically reach opposite conclusions. Using data for two Italian regions, we rely on a matching estimator to show that TWA assignments can be an effective springboard to permanent employment. We also propose a simulation-based sensitivity analysis, which highlights that only for one of these two regions are our results robust to specific failures of the CIA. We conclude that European studies based on the CIA should not be automatically discarded, but should be put under the scrutiny of a sensitivity analysis like the one we propose. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • 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.
  • Handle: RePEc:jae:japmet:v:23:y:2008:i:3:p:305-327
    DOI: 10.1002/jae.998
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    References listed on IDEAS

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    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, Vacancies, and Immigrant Workers

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