IDEAS home Printed from https://ideas.repec.org/p/anc/wpaper/393.html
   My bibliography  Save this paper

Does Apprenticeship Improve Job Opportunities? A Regression Discontinuity Approach

Author

Listed:
  • Matteo PICCHIO

    () (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Stefano STAFFOLANI

    () (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

Abstract

In Italy the reforms of the last twenty years shaped a dual labour market with different levels of employment protection for permanent jobs, on one side, and temporary jobs like apprenticeships and fixed-term contracts, on the other side. The main difference between apprentices and other types of temporary workers is that the former should receive firm-provided training. The firm incentive in hiring apprentices consists in the possibility to pay lower wages and in a reduction in labour taxes. Using an Italian administrative longitudinal dataset containing information on all the job contracts started between January 2009 and June 2012, we estimate hazard functions towards permanent jobs and contrast the ones of apprentices with those of other types of temporary workers. The hazard function estimates based on a regression discontinuity approach affirm that apprenticeships are sorts of "long entrance halls" towards open-ended contracts, especially within the same firm where the apprenticeship was performed.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Matteo PICCHIO & Stefano STAFFOLANI, 2013. "Does Apprenticeship Improve Job Opportunities? A Regression Discontinuity Approach," Working Papers 393, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:393
    as

    Download full text from publisher

    File URL: http://docs.dises.univpm.it/web/quaderni/pdf/393.pdf
    File Function: First version, 2013
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lorenzo Cappellari & Carlo Dell’Aringa & Marco Leonardi, 2012. "Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms," Economic Journal, Royal Economic Society, vol. 122(562), pages 188-215, August.
    2. anonymous, 2004. "The federal fiscal outlook," Public Policy Brief, Federal Reserve Bank of Boston.
    3. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory and Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 79-119.
    4. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    5. Battistin, Erich & Rettore, Enrico, 2008. "Ineligibles and eligible non-participants as a double comparison group in regression-discontinuity designs," Journal of Econometrics, Elsevier, vol. 142(2), pages 715-730, February.
    6. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2009. "Are Temporary Jobs a Port of Entry into Permanent Employment? Evidence from Matched Employer-Employee Data," Working papers 06, Former Department of Economics and Public Finance "G. Prato", University of Torino.
    7. Bart Cockx & Matteo Picchio, 2012. "Are Short-lived Jobs Stepping Stones to Long-Lasting Jobs?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(5), pages 646-675, October.
    8. Andrew Clark & Fabien Postel-Vinay, 2009. "Job security and job protection," Oxford Economic Papers, Oxford University Press, vol. 61(2), pages 207-239, April.
    9. Wiji Arulampalam & Alison L. Booth, 1998. "Training and Labour Market Flexibility: Is There a Trade-off?," British Journal of Industrial Relations, London School of Economics, vol. 36(4), pages 521-536, December.
    10. 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.
    11. Gagliarducci, Stefano, 2005. "The dynamics of repeated temporary jobs," Labour Economics, Elsevier, vol. 12(4), pages 429-448, August.
    12. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    13. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages 189-213, June.
    14. Renato Faccini, 2014. "Reassessing Labour Market Reforms: Temporary Contracts as a Screening Device," Economic Journal, Royal Economic Society, vol. 124(575), pages 167-200, March.
    15. Jan Erik Askilden & Øivind Anti Nilsen, 2005. "Apprentices And Young Workers: A Study Of The Norwegian Youth Labour Market," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(1), pages 1-17, February.
    16. Gregg, Paul & Tominey, Emma, 2005. "The wage scar from male youth unemployment," Labour Economics, Elsevier, vol. 12(4), pages 487-509, August.
    17. Matteo Picchio & Stefano Staffolani, 2019. "Does apprenticeship improve job opportunities? A regression discontinuity approach," Empirical Economics, Springer, vol. 56(1), pages 23-60, January.
    18. C. Göbel & E. Verhofstadt, 2008. "Is temporary employment a stepping stone for unemployed school leavers?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 08/542, Ghent University, Faculty of Economics and Business Administration.
    19. Marloes de Graaf-Zijl & Gerard van den Berg & Arjan Heyma, 2011. "Stepping stones for the unemployed: the effect of temporary jobs on the duration until (regular) work," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 107-139, January.
    20. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2011. "Are temporary jobs a port of entry into permanent employment?: Evidence from matched employer-employee," International Journal of Manpower, Emerald Group Publishing, vol. 32(8), pages 879-899, November.
    21. Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-138, February.
    22. Acemoglu, Daron & Pischke, Jorn-Steffen, 2000. "Certification of training and training outcomes," European Economic Review, Elsevier, vol. 44(4-6), pages 917-927, May.
    23. repec:tur:wpaper:6 is not listed on IDEAS
    24. Boockmann, Bernhard & Hagen, Tobias, 2008. "Fixed-term contracts as sorting mechanisms: Evidence from job durations in West Germany," Labour Economics, Elsevier, vol. 15(5), pages 984-1005, October.
    25. Gaure, Simen & Roed, Knut & Zhang, Tao, 2007. "Time and causality: A Monte Carlo assessment of the timing-of-events approach," Journal of Econometrics, Elsevier, vol. 141(2), pages 1159-1195, December.
    26. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    27. Stephen W. Salant, 1977. "Search Theory and Duration Data: A Theory of Sorts," The Quarterly Journal of Economics, Oxford University Press, vol. 91(1), pages 39-57.
    28. Thomas A. Mroz & Timothy H. Savage, 2006. "The Long-Term Effects of Youth Unemployment," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
    29. Marco Lilla & Stefano Staffolani, 2012. "Young Entrants, Temporary Jobs and Career Opportunities: Short-Term Perspectives of Young Italian Workers," Rivista di statistica ufficiale, ISTAT - Italian National Institute of Statistics - (Rome, ITALY), vol. 14(1), pages 50-60, October.
    30. Laura Hartman & Linus Liljeberg & Oskar Skans, 2010. "Stepping-stones, dead-ends, or both? An analysis of Swedish replacement contracts," Empirical Economics, Springer, vol. 38(3), pages 645-668, June.
    31. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1409-1448.
    32. Arulampalam, Wiji, 2001. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," Economic Journal, Royal Economic Society, vol. 111(475), pages 585-606, November.
    33. Gregg, Paul, 2001. "The Impact of Youth Unemployment on Adult Unemployment in the NCDS," Economic Journal, Royal Economic Society, vol. 111(475), pages 626-653, November.
    34. Casquel, Elena & Cunyat, Antoni, 2008. "Temporary contracts, employment protection and skill: A simple model," Economics Letters, Elsevier, vol. 100(3), pages 333-336, September.
    35. Catalina Amuedo-Dorantes & Miguel Malo & Fernando Muñoz-Bullón, 2008. "The Role of Temporary Help Agency Employment on Temp-to-Perm Transitions," Journal of Labor Research, Springer, vol. 29(2), pages 138-161, June.
    36. Wilbert van der Klaauw, 2002. "Estimating the Effect of Financial Aid Offers on College Enrollment: A Regression-Discontinuity Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1249-1287, November.
    37. Lancaster,Tony, 1992. "The Econometric Analysis of Transition Data," Cambridge Books, Cambridge University Press, number 9780521437899, March.
    38. Booth, Alison L & Satchell, Stephen E, 1993. "Apprenticeships and Job Tenure: A Competing Risks Model with Time-varying Covariates," CEPR Discussion Papers 762, C.E.P.R. Discussion Papers.
    39. Matteo Picchio, 2008. "Temporary Contracts and Transitions to Stable Jobs in Italy," LABOUR, CEIS, vol. 22(s1), pages 147-174, June.
    40. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-209, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. d'Agostino, Giorgio & Pieroni, Luca & Scarlato, Margherita, 2018. "Evaluating the effects of labour market reforms on job flows: The Italian case," Economic Modelling, Elsevier, vol. 68(C), pages 178-189.
    2. Regina T. Riphahn & Michael Zibrowius, 2015. "Apprenticeship, Vocational Training and Early Labor Market Outcomes - in East and West Germany," SOEPpapers on Multidisciplinary Panel Data Research 743, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Andrea Albanese & Lorenzo Cappellari & Marco Leonardi, 2017. "The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships," DISCE - Working Papers del Dipartimento di Economia e Finanza def057, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    4. Matteo Picchio & Stefano Staffolani, 2019. "Does apprenticeship improve job opportunities? A regression discontinuity approach," Empirical Economics, Springer, vol. 56(1), pages 23-60, January.
    5. Federico Quaresima & Fabio Fiorillo & Raffaella Santolini, 2018. "Does Political Affiliation Matter On Post-Parliamentary Careers In The Boards Of Public Enterprises?," Working Papers 429, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    6. d'Agostino, Giorgio & Raitano, Michele & Scarlato, Margherita, 2019. "Job mobility and heterogeneous returns to apprenticeship training in Italy," MPRA Paper 92261, University Library of Munich, Germany.
    7. Ghirelli, Corinna & Havari, Enkelejda & Santangelo, Giulia & Scettri, Marta, 2018. "Does on-the-job training help graduates find a job? Evidence from an Italian region," Working Papers 2018-14, Joint Research Centre, European Commission (Ispra site).
    8. Maria Giovanna Bosco & Elisa Valeriani, 2018. "The Road to Permanent Work in Italy: “It’s Getting Dark, Too Dark to See”," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(3), pages 385-419, November.
    9. Corseuil, Carlos Henrique & Foguel, Miguel N. & Gonzaga, Gustavo, 2019. "Apprenticeship as a stepping stone to better jobs: Evidence from Brazilian matched employer-employee data," Labour Economics, Elsevier, vol. 57(C), pages 177-194.
    10. Chiara Gigliarano & Francesco Chelli, 2016. "Measuring inter-temporal intragenerational mobility: an application to the Italian labour market," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 89-102, January.
    11. Chiara Gigliarano & Francesco Maria Chelli, 2014. "A nonparametric Gini concentration test for labour market analysis," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - Italian Review of Economics, Demography and Statistics, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 68(3-4), pages 135-142, July-Dece.
    12. Marco Bee & Julien Hambuckers, 2020. "Modeling multivariate operational losses via copula-based distributions with g-and-h marginals," DEM Working Papers 2020/3, Department of Economics and Management.
    13. Andrea Albanese & Lorenzo Cappellari & Marco Leonardi, 2017. "The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships," CESifo Working Paper Series 6481, CESifo.
    14. Regina T. Riphahn & Michael Zibrowius, 2015. "Apprenticeship, Vocational Training and Early Labor Market Outcomes - in East and West Germany," CESifo Working Paper Series 5254, CESifo.
    15. Nicolò Gnocato & Chiara Tomasi & Francesca Modena, 2020. "Labor market reforms and allocative efficiency in Italy," DEM Working Papers 2020/1, Department of Economics and Management.
    16. d'Agostino, Giorgio & Pieroni, Luca & Scarlato, Margherita, 2015. "Revisiting the Effects of Enhanced Flexibility on the Italian Labour Market," MPRA Paper 63239, University Library of Munich, Germany.
    17. José Luis Viveros Añorve, 2015. "Towards a more effective poverty reduction in Mexico: a general equilibrium assessment," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 4(1), pages 75-107, March.
    18. Chiara Gigliarano & Francesco Maria Chelli, 2016. "Measuring inter-temporal intragenerational mobility: an application to the Italian labour market," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 89-102, January.

    More about this item

    Keywords

    Apprenticeship; hazard function; permanent work; regression discontinuity; temporary work;

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:anc:wpaper:393. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maurizio Mariotti). General contact details of provider: http://edirc.repec.org/data/deancit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.