The Dynamics of Unemployment, Temporary and Permanent Employment in Italy
In: Non-Standard Employment and Quality of Work. The Case of Italy
This chapter assesses whether temporary jobs have been springboards to regular employment or to dead-end positions in Italy, using for the purpose the 2000, 2002, and 2004 waves of the Survey of Italian Households' Income and Wealth. The estimation of a bivariate dynamic unobserved effects probit model to predict the probability of having a permanent position given the lagged labour market state shows that, ceteris paribus, having a temporary contract today, rather than being unemployed, increases the probability of having a permanent job two years later by about 13.7-16.2 percentage points. This evidence suggests that, given observable and unobservable characteristics, temporary contracts in Italy are stepping-stones to permanent jobs. They enable individuals to leave unemployment by giving them the opportunity to acquire general (and possibly) specific skills so that they are permanent employable afterwards. The estimation of a dynamic discrete mixture and linear probability models assesses the robustness of the stepping-stone effect to the parametric assumptions about the individual heterogeneity. The average partial effects estimated using these two approaches, which were nonparametric in the specification of the unobserved heterogeneity, are in line with those obtained with dynamic nonlinear unobserved effects probit models.
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- Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000.
"Temporary Jobs: Stepping Stones or Dead Ends?,"
IZA Discussion Papers
205, Institute for the Study of Labor (IZA).
- Alessie, R.J.M. & Hochgürtel, S. & van Soest, A.H.O., 2004.
"Ownership of stocks and mutual funds : A panel data analysis,"
Other publications TiSEM
471d7c77-905c-4d47-84b9-d, Tilburg University, School of Economics and Management.
- Rob Alessie & Stefan Hochguertel & Arthur van Soest, 2004. "Ownership of Stocks and Mutual Funds: A Panel Data Analysis," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 783-796, August.
- Alessie, Rob & Stefan Hochguertel & Arthur van Soest, 2002. "Ownership of Stocks and Mutual Funds: A Panel Data Analysis," Royal Economic Society Annual Conference 2002 3, Royal Economic Society.
- Alessie, R.J.M. & Hochgürtel, S. & van Soest, A.H.O., 2001. "Ownership of Stocks and Mutual Funds : A Panel Data Analysis," Discussion Paper 2001-94, Tilburg University, Center for Economic Research.
- Matteo, PICCHIO, 2006. "Wage Differentials and Temporary Jobs in Italy," Discussion Papers (ECON - Département des Sciences Economiques) 2006033, Université catholique de Louvain, Département des Sciences Economiques.
- Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2005. "Temporary Work Agencies in Italy: A Springboard Toward Permanent Employment?," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(1), pages 1-27, September.
- Juan F. Jimeno & Luis Toharia, 1993. "The effects of fixed-term employment on wages: theory and evidence from Spain," Investigaciones Economicas, Fundación SEPI, vol. 17(3), pages 475-494, September.
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