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The Take-off of Temporary Employment in the Italian Labor Market


  • Tommaso NANNICINI


This paper exploits the available empirical evidence in order to shed light on the take-o. of temporary employment in Italy. This kind of non-standard employment was recently legalized by the law 196/1997. The national data set of “Manpower” -one of the leading agencies in the Italian market- is used to address two related questions. One, what is the utilization intensity of temporary employment in each sector of the economy? And two, is it related to volatility or recent changes in the hiring pattern? To sidestep the fact that official statistics report all temps in the service sector, this paper combines the “Manpower” data set with other sources and estimate the share of temps within each industry. The utilization of temps appears to be positively correlated with production volatility. Recently, industries that have used temps more intensively experienced a drop in their share of total permanent employment. These findings support the view that the take-o. of temporary employment in Italy was essentially demand driven.

Suggested Citation

  • Tommaso NANNICINI, 2004. "The Take-off of Temporary Employment in the Italian Labor Market," Economics Working Papers ECO2004/09, European University Institute.
  • Handle: RePEc:eui:euiwps:eco2004/09

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    Cited by:

    1. 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.
    2. Tealdi, Cristina, 2011. "Typical and atypical employment contracts: the case of Italy," MPRA Paper 39456, University Library of Munich, Germany.
    3. Sergio Destefanis & Raquel Fonseca, 2006. "Labour-Market Reforms and the Beveridge Curve. Some Macro Evidence for Italy," CSEF Working Papers 168, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    4. 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.
    5. Bosio, Giulio, 2008. "Labour market transition in Italy: an empirical investigation," MPRA Paper 18901, University Library of Munich, Germany.
    6. Wolfgang Ochel, 2008. "The Political Economy of Two-tier Reforms of Employment Protection in Europe," CESifo Working Paper Series 2461, CESifo Group Munich.

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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