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

Listed author(s):
  • Albanese, Andrea

    ()

    (Ghent University)

  • Cappellari, Lorenzo

    ()

    (Università Cattolica del Sacro Cuore)

  • Leonardi, Marco

    ()

    (University of Milan)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10766.

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Length: 35 pages
Date of creation: May 2017
Handle: RePEc:iza:izadps:dp10766
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  1. Frölich, Markus & Huber, Martin & Wiesenfarth, Manuel, 2015. "The Finite Sample Performance of Semi- and Nonparametric Estimators for Treatment Effects and Policy Evaluation," IZA Discussion Papers 8756, Institute for the Study of Labor (IZA).
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  14. Eichhorst, Werner & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "A Roadmap to Vocational Education and Training Systems Around the World," IZA Discussion Papers 7110, Institute for the Study of Labor (IZA).
  15. 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.
  16. Lechner, Michael & Strittmatter, Anthony, 2014. "Practical Procedures to Deal with Common Support Problems in Matching Estimation," Economics Working Paper Series 1410, University of St. Gallen, School of Economics and Political Science.
  17. Liliane Bonnal & Sylvie Mendes & Catherine Sofer, 2002. "School-to-work transition: apprenticeship versus vocational school in France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00367135, HAL.
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