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Poverty and Temporary Employment in Italy

Author

Listed:
  • Chiara Mussida

    (Università Cattolica del Sacro Cuore)

  • Dario Sciulli

    (University of Chieti-Pescara)

Abstract

This paper explores the relationship between temporary employment and poverty in Italy by using 2016–2019 longitudinal EU-SILC data. We model both poverty and labour market outcomes and account for possible endogeneity of temporary employment in the poverty equation. We find that temporary employment reduces the risk of poverty whether compared with inactivity and unemployment. Temporary workers are more likely to stay in poverty with respect to their permanent counterpart. The different effect of permanent/temporary employment on the risk of poverty is more pronounced for householders than for partners, thereby stressing the leading role of the former in income formation. There is evidence of feedback effects from past poverty to current temporary employment. We also find significant genuine state dependence in both the processes of poverty and temporary employment. For the latter, we note the prevalence of a trapping effect into unstable jobs relationships, especially for householders. Finally, we stress the relatively weak role of social transfers in integrating labour income from temporary employment and therefore in breaking the detrimental effect of temporary work on poverty.

Suggested Citation

  • Chiara Mussida & Dario Sciulli, 2025. "Poverty and Temporary Employment in Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(3), pages 983-1014, November.
    • Handle: RePEc:spr:italej:v:11:y:2025:i:3:d:10.1007_s40797-024-00297-z
    DOI: 10.1007/s40797-024-00297-z
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    Keywords

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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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