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Job mobility and heterogeneous returns to apprenticeship training in Italy

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  • Giorgio d'Agostino
  • Michele Raitano
  • Margherita Scarlato

Abstract

Apprenticeship may provide an important opportunity to improve human capital and future earnings of young people, especially those with low levels of education. Based on new administrative data, we provide the first empirical evidence of the effect on wages and employability of the mobility across firms and economic sectors of apprentices after graduation in Italy. We use an instrumental variable approach to account for endogenous selection that is based on observed and unobserved characteristics when estimating the causal effects of mobility. Our main finding is that job switchers outside the economic sector of the training firm faced a considerable gap in wages and weeks worked in comparison to stayers in the training firm, indicating a loss of firm-specific human capital. In addition, the new apprenticeship introduced by the Biagi reform, which lessened the stringency of the norms on the training content delivered by firms, resulted in further reductions of the transferability of skills for trainees relative to the previous regime. Overall, the apprenticeship contract in Italy generated earning gaps according to the workers’ mobility after graduation,thus increasing inequality among similar employees.

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  • Giorgio d'Agostino & Michele Raitano & Margherita Scarlato, 2019. "Job mobility and heterogeneous returns to apprenticeship training in Italy," Working Papers 0043, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
  • Handle: RePEc:ast:wpaper:0043
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    2. Gnocato, Nicolò & Modena, Francesca & Tomasi, Chiara, 2020. "Labor market reforms and allocative efficiency in Italy," Labour Economics, Elsevier, vol. 67(C).

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    More about this item

    Keywords

    Apprenticeship training; Job mobility; Wages;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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