IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Stepping Stones versus Dead End Jobs: Exits from Temporary Contracts in Italy after the 2003 Reform

  • Bruno, Giovanni S. F.

    ()

    (Bocconi University)

  • Caroleo, Floro Ernesto

    ()

    (University of Naples Parthenope)

  • Dessy, Orietta

    ()

    (Università Cattolica del Sacro Cuore)

In this paper we study labor market transitions out of temporary jobs in Italy focussing on an interesting period of the Italian recent history: the one immediately following the last labor market reform aimed at flexibilizing and liberalizing the Italian labor market by a widespread use of temporary work arrangements in 2003, and immediately preceding the economic downturn starting in the second half of 2007. The data-set used is the 2004-2007 IT-SILC individual panel. We apply a discrete-time duration analysis and estimate a competing-risk model for assessing to which extent, and for whom, starting a temporary job after 2004 results within a 3-years span in a stepping stone to permanent employment rather than a dead end out of the labor market or in precarious jobs. We find that temporary contracts have a positive impact only on men's transitions to permanent employment. School leavers, workers in the South, as well as women, are instead rather penalized after a temporary job. They have an higher probability to remain trapped in temporary contracts than men and an higher probability of exiting the labour market. In particular, school leavers entering the labour market with a temporary contract experience relatively high exit-rates to non-employment just after the first year of the contract.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://ftp.iza.org/dp6746.pdf
Download Restriction: no

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6746.

as
in new window

Length: 35 pages
Date of creation: Jul 2012
Date of revision:
Publication status: published in: Rivista Internazionale di Scienze Sociali, 2013, 1, 31-60
Handle: RePEc:iza:izadps:dp6746
Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information: Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Guell, Maia & Petrongolo, Barbara, 2007. "How binding are legal limits? Transitions from temporary to permanent work in Spain," Labour Economics, Elsevier, vol. 14(2), pages 153-183, April.
  2. Cappellari, Lorenzo & Dell'Aringa, Carlo & Leonardi, Marco, 2012. "Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms," IZA Discussion Papers 6526, Institute for the Study of Labor (IZA).
  3. Pedro Portugal & José Varejão, 2010. "The Hidden Side of Temporary Employment: Fixed-term Contracts as a Screening Device," Working Papers w201029, Banco de Portugal, Economics and Research Department.
  4. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2011. "Are temporary jobs a port of entry into permanent employment?: Evidence from matched employer-employee," International Journal of Manpower, Emerald Group Publishing, vol. 32(8), pages 879-899, November.
  5. Garrouste, Christelle & Loi, Massimo, 2011. "School-to-work transitions in Europe: Paths towards a permanent contract," MPRA Paper 37167, University Library of Munich, Germany.
  6. John T. Addison & Christopher J. Surfield, 2008. "Atypical Work and Employment Continuity," Working Paper Series 12-08, The Rimini Centre for Economic Analysis, revised Jan 2008.
  7. Holmlund, Bertil & Storrie, Donald, 2001. "Temporary Work in Turbulent Times: The Swedish Experience," Working Paper Series 2002:1, Uppsala University, Department of Economics.
  8. Michael Kvasnicka, 2009. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Chapters, in: Studies of Labor Market Intermediation, pages 335-372 National Bureau of Economic Research, Inc.
  9. Laura Hartman & Linus Liljeberg & Oskar Skans, 2010. "Stepping-stones, dead-ends, or both? An analysis of Swedish replacement contracts," Empirical Economics, Springer, vol. 38(3), pages 645-668, June.
  10. Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske, 2007. "The Role of Temporary Help Employment in Low-wage Worker Advancement," NBER Working Papers 13520, National Bureau of Economic Research, Inc.
  11. D'Addio, Anna Cristina & Rosholm, Michael, 2005. "Exits from temporary jobs in Europe: A competing risks analysis," Labour Economics, Elsevier, vol. 12(4), pages 449-468, August.
  12. Luca Nunziata & Stefano Staffolani, 2007. "Short-Term Contracts Regulations And Dynamic Labour Demand: Theory And Evidence," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(1), pages 72-104, 02.
  13. Dimitris Pavlopoulos, 2009. "Starting Your Career with a Temporary Job: Stepping Stone or "Dead-End"?," SOEPpapers on Multidisciplinary Panel Data Research 228, DIW Berlin, The German Socio-Economic Panel (SOEP).
  14. Juan José Dolado & Carlos García-Serrano & Juan F. Jimeno, . "Drawing Lessons from the Boom of Temporary Jobs in Spain," Working Papers 2001-11, FEDEA.
  15. Leandro Elia, 2010. "The Pathway To Permanent Jobs: A Time Event Analysis Of Young Italian Workers," Working Papers 201018, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  16. Floro Ernesto Caroleo & Francesco Pastore, 2007. "The Youth Experience Gap: Explaining Differences across EU Countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 41/2007, Università di Perugia, Dipartimento Economia.
  17. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2009. "Are Temporary Jobs a Port of Entry into Permanent Employment? Evidence from Matched Employer-Employee Data," Working papers 6, Former Department of Economics and Public Finance "G. Prato", University of Torino.
  18. Quintini, Glenda & Martin, John P. & Martin, Sébastien, 2007. "The Changing Nature of the School-to-Work Transition Process in OECD Countries," IZA Discussion Papers 2582, Institute for the Study of Labor (IZA).
  19. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1409-1448, November.
  20. Stefani Scherer, 1999. "Early Career Patterns - a Comparison of Great Britain and West Germany," MZES Working Papers 7, MZES.
  21. Gagliarducci, Stefano, 2005. "The dynamics of repeated temporary jobs," Labour Economics, Elsevier, vol. 12(4), pages 429-448, August.
  22. Magnac, Thierry, 2000. "Subsidised Training and Youth Employment: Distinguishing Unobserved Heterogeneity from State Dependence in Labour Market Histories," Economic Journal, Royal Economic Society, vol. 110(466), pages 805-37, October.
  23. Arellano, Manuel & Bentolila, Samuel & Bover, Olympia, 1998. "Unemployment Duration, Benefit Duration and the Business Cycle," CEPR Discussion Papers 1840, C.E.P.R. Discussion Papers.
  24. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA).
  25. Caroleo, Floro Ernesto & Pastore, Francesco, 2009. "Le cause del (l’in-)successo lavorativo dei giovani
    [The determinants of youth success in the labour market]
    ," MPRA Paper 14218, University Library of Munich, Germany.
  26. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
  27. Kim B. Clark & Lawrence H. Summers, 1982. "Labor Force Participation: Timing and Persistence," NBER Working Papers 0977, National Bureau of Economic Research, Inc.
  28. Alessandra Righi & Dario Sciulli, 2009. "The Timing of the School-to-Permanent Work Transition: a Comparison across Ten European Countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 65/2009, Università di Perugia, Dipartimento Economia.
  29. Matteo Picchio, 2008. "Temporary Contracts and Transitions to Stable Jobs in Italy," LABOUR, CEIS, vol. 22(s1), pages 147-174, 06.
  30. Glenda Quintini & Sébastien Martin, 2006. "Starting Well or Losing their Way?: The Position of Youth in the Labour Market in OECD Countries," OECD Social, Employment and Migration Working Papers 39, OECD Publishing.
  31. Eng Loh, 1994. "Employment probation as a sorting mechanism," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(3), pages 471-486, April.
  32. Anna Christina D'Addio & Michael Rosholm, . "Left-Censoring in Duration Data: Theory and Applications," Economics Working Papers 2002-5, School of Economics and Management, University of Aarhus.
  33. C. Göbel & E. Verhofstadt, 2008. "Is temporary employment a stepping stone for unemployed school leavers?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 08/542, Ghent University, Faculty of Economics and Business Administration.
  34. Catalina Amuedo-Dorantes & Miguel Malo & Fernando Muñoz-Bullón, 2008. "The Role of Temporary Help Agency Employment on Temp-to-Perm Transitions," Journal of Labor Research, Springer, vol. 29(2), pages 138-161, June.
  35. Julie Hotchkiss, 1999. "The effect of transitional employment on search duration: A selectivity approach," Atlantic Economic Journal, International Atlantic Economic Society, vol. 27(1), pages 38-52, March.
  36. Rees, Albert, 1986. "An Essay on Youth Joblessness," Journal of Economic Literature, American Economic Association, vol. 24(2), pages 613-28, June.
  37. O'Higgins, Niall, 2010. "The impact of the economic and financial crisis on youth employment : measures for labour market recovery in the European Union, Canada and the United States," ILO Working Papers 462129, International Labour Organization.
  38. Manfred Antoni & Elke J. Jahn, 2009. "Do Changes in Regulation Affect Employment Duration in Temporary Help Agencies?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 62(2), pages 226-251, January.
  39. Gianna Barbieri & Paolo Sestito, 2008. "Temporary Workers in Italy: Who Are They and Where They End Up," LABOUR, CEIS, vol. 22(1), pages 127-166, 03.
  40. 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.
  41. Wang, Ruqu & Weiss, Andrew, 1998. "Probation, layoffs, and wage-tenure profiles: A sorting explanation," Labour Economics, Elsevier, vol. 5(3), pages 359-383, September.
  42. Hildegard Brauns & Markus Gangl & Stefani Scherer, 1999. "Education and Unemployment: Patterns of Labour Market Entry in France, the United Kingdom and Germany," MZES Working Papers 6, MZES.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6746. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.