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Changing labour market opportunities for young people in Italy and the role of the family of origin

Author

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  • Gabriella Berloffa

    (University of Trento)

  • Francesca Modena

    (Bank of Italy)

  • Paola Villa

    (University of Trento)

Abstract

This paper considers the increased incidence of insecure job conditions for young individuals entering the Italian labour market and their chances of moving to a more secure job after a reasonable period of time. In particular, we investigate empirically whether and how long-term changes in labour market institutions and conditions have altered the role of the family of origin in both labour market entry and subsequent transitions. We use the Italian Households Longitudinal Study (Ilfi) and show that employment opportunities have changed significantly in Italy over the past three decades (from the late 1970s to the early 2000s). For an increasing share of young adults precariousness extends over a fairly long period of their working life. The family of origin reduced the probability of insecurity both in the early 1980s and during the 1990s, but in a different way: in the early 1980s, it had an effect in the entry year, but not subsequently; after the implementation of the Treu reform, its effect appeared only in the years following that of entry. Our overall results suggest that the rapid expansion of insecure contractual arrangements in the 1990s-early 2000s has increased the difficulty of transitioning to a “better” job condition (i.e. secure employment). This has enhanced the role of the family of origin in overcoming the difficulty and generated new inequalities among young Italians.

Suggested Citation

  • Gabriella Berloffa & Francesca Modena & Paola Villa, 2015. "Changing labour market opportunities for young people in Italy and the role of the family of origin," Temi di discussione (Economic working papers) 998, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_998_15
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    Cited by:

    1. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "The role of the education systems and the labour market institutions in enhancing youth employment: a cross-country analysis," Discussion Papers 1_2017, CRISEI, University of Naples "Parthenope", Italy.
    2. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "Youth Labour-Market Performance, Institutions and Vet Systems: A Cross-Country Analysis," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(1), pages 39-69, March.
    3. Emanuela Ghignoni, 2017. "Who do you know or what do you know? Informal recruitment channels, family background and university enrolments," Working Papers 179, University of Rome La Sapienza, Department of Public Economics.
    4. Gabriella BERLOFFA & Eleonora MATTEAZZI & Alina ŞANDOR & Paola VILLA, 2016. "Youth employment security and labour market institutions: A dynamic perspective," International Labour Review, International Labour Organization, vol. 155(4), pages 651-678, December.

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    More about this item

    Keywords

    youth occupational outcomes; precarious employment; family of origin; Italy;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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