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Getting stable: an evaluation of the incentives for permanent contracts in Italy

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  • Emanuele Ciani
  • Guido de Blasio

Abstract

There is little evidence as to the effectiveness of incentives for the conversion of fixed-term contracts into permanent jobs. We aim at filling this gap by studying a recent Italian program which provides benefits for employers who convert contracts for workers in specific demographic groups (females, younger men). Due to funding constraints, the incentives were available only for a few days, allowing us to employ a difference-in-differences strategy between similar short periods. Using administrative microdata for the Veneto region, we show that the subsidy increased conversions by 83% on average, with no substitution effects over time or across groups of workers. JEL codes: J21, J41, J48 Copyright Ciani and de Blasio; licensee Springer. 2015

Suggested Citation

  • Emanuele Ciani & Guido de Blasio, 2015. "Getting stable: an evaluation of the incentives for permanent contracts in Italy," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-29, December.
    • Handle: RePEc:spr:izaels:v:4:y:2015:i:1:p:1-29:10.1186/s40174-015-0030-5
    DOI: 10.1186/s40174-015-0030-5
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    Cited by:

    1. Berson, Clémence & Ferrari, Nicolas, 2015. "Financial incentives and labour market duality," Labour Economics, Elsevier, vol. 37(C), pages 77-92.
    2. Paolo Sestito & Eliana Viviano, 2016. "Hiring incentives and/or firing cost reduction? Evaluating the impact of the 2015 policies on the Italian labour market," Questioni di Economia e Finanza (Occasional Papers) 325, Bank of Italy, Economic Research and International Relations Area.
    3. Clémence Berson, 2018. "Fixed-Term Contracts and Labor Market Duality in France," De Economist, Springer, vol. 166(4), pages 455-476, December.
    4. Arbolino, Roberta & Caro, Paolo Di, 2021. "Can the EU funds promote regional resilience at time of Covid-19? Insights from the Great Recession11We thank the Editors and the four anonymous referees for helpful comments. We also thank Emanuele C," Journal of Policy Modeling, Elsevier, vol. 43(1), pages 109-126.
    5. Antonio Accetturo & Francesca Modena & Giacomo Ziglio, 2023. "Subsidies for permanent employment in the time of Covid-19," Questioni di Economia e Finanza (Occasional Papers) 808, Bank of Italy, Economic Research and International Relations Area.
    6. Giulia Bovini & Eliana Viviano, 2018. "The Italian "employment-rich" recovery: a closer look," Questioni di Economia e Finanza (Occasional Papers) 461, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    Fixed-term contracts; Permanent employment; Diff-in-diffs;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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