Temporary Help Workers in Italy. Where Do They Come From and Where Do They Go?

This paper aims at empirically studying the probability of exiting temporary help work in Italy by modelling both the transition to different labour market states and the effect of state dependence by using an ad hoc survey conducted on a representative sample of around 2,300 temporary help workers in Italy. Confirming previous empirical findings, this study suggests in general that, in Italy, temporary help work is not per se a ‘trap’. However, its effect as a ‘stepping-stone’ towards stable employment depends strictly not only on workers’ characteristics but also on those of firms and jobs. In particular, too many short temporary help work experiences and too many employing firms have a negative impact on transitions to stable jobs. These contracts are also used as screening devices and transition to permanent employment is more likely in low unemployment regions, while transitions (back) to either unemployment or education are more likely in high unemployment ones. The probability of moving from temporary help work to a stable job is higher for workers with previous stable work experiences, mainly in manual jobs in manufacturing. The probability of moving from temporary jobs to unemployment is higher for women and for individuals with low levels of education. Women are also more likely to remain in temporary help employment than to move to a stable job.