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The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships

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  • Andrea Albanese
  • Lorenzo Cappellari
  • Marco Leonardi

Abstract

This paper estimates the causal effects of the 2003 reform of the Italian apprenticeship contract which aimed at introducing the “dual system” in Italy by allowing on-the-job training. The reform also increased the age eligibility of the apprenticeship contract and introduced a minimum floor to apprentices’ wages. Using administrative data and balancing techniques we find that five years after hiring, the new contract improves the chances of moving to a permanent job in the same firm, yet this happens mostly in large firms. There are also sizeable long-run wage effects of the reform, well beyond the legal duration of apprenticeships, compatible with increased human capital accumulation probably due to the training provisions of the reform.

Suggested Citation

  • Andrea Albanese & Lorenzo Cappellari & Marco Leonardi, 2017. "The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships," CESifo Working Paper Series 6481, CESifo.
  • Handle: RePEc:ces:ceswps:_6481
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    References listed on IDEAS

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    1. The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships
      by maximorossi in NEP-LTV blog on 2018-02-27 12:20:58

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    3. 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.
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    13. Corinna Ghirelli & Enkelejda Havari & Giulia Santangelo & Marta Scettri, 2019. "Does on-the-job training help graduates find a job? Evidence from an Italian region," International Journal of Manpower, Emerald Group Publishing, vol. 40(3), pages 500-524, June.
    14. Michele Tettamanzi, 2017. "E Many Pluribus Unum: A Behavioural Macro-Economic Agent Based Model," DISCE - Working Papers del Dipartimento di Economia e Finanza def062, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    15. Fanfani, Bernardo, 2022. "Tastes for discrimination in monopsonistic labour markets," Labour Economics, Elsevier, vol. 75(C).
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    18. 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.
    19. Agata Maida & Cristina Tealdi, 2021. "Does Employment Protection Affect Qualification Mismatch?," British Journal of Industrial Relations, London School of Economics, vol. 59(3), pages 701-729, September.
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    More about this item

    Keywords

    apprenticeship; permanent work; youth employment; covariate balancing propensity score;
    All these keywords.

    JEL classification:

    • 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
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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