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Does Apprenticeship Improve Job Opportunities? A Regression Discontinuity Approach

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  • Picchio, Matteo

    () (Università Politecnica delle Marche, Ancona)

  • Staffolani, Stefano

    () (Marche Polytechnic University)

Abstract

In Italy the reforms of the last twenty years shaped a dual labour market with different levels of employment protection for permanent jobs, on one side, and temporary jobs like apprenticeships and fixed-term contracts, on the other side. The main difference between apprentices and other types of temporary workers is that the former should receive firm-provided training. The firm incentive in hiring apprentices consists in the possibility to pay lower wages and in a reduction in labour taxes. Using an Italian administrative longitudinal dataset containing information on all the job contracts started between January 2009 and June 2012, we estimate hazard functions towards permanent jobs and contrast the ones of apprentices with those of other types of temporary workers. The hazard function estimates based on a regression discontinuity approach affirm that apprenticeships are sorts of "long entrance halls" towards open-ended contracts, especially within the same firm where the apprenticeship was performed.

Suggested Citation

  • Picchio, Matteo & Staffolani, Stefano, 2013. "Does Apprenticeship Improve Job Opportunities? A Regression Discontinuity Approach," IZA Discussion Papers 7719, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp7719
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    Cited by:

    1. Chiara Gigliarano & Francesco Maria Chelli, 2016. "Measuring inter-temporal intragenerational mobility: an application to the Italian labour market," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 89-102, January.
    2. Matteo Picchio & Stefano Staffolani, 2019. "Does apprenticeship improve job opportunities? A regression discontinuity approach," Empirical Economics, Springer, vol. 56(1), pages 23-60, January.
    3. d'Agostino, Giorgio & Raitano, Michele & Scarlato, Margherita, 2019. "Job mobility and heterogeneous returns to apprenticeship training in Italy," MPRA Paper 92261, University Library of Munich, Germany.
    4. Albanese, Andrea & Cappellari, Lorenzo & Leonardi, Marco, 2017. "The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships," IZA Discussion Papers 10766, Institute of Labor Economics (IZA).
    5. Chiara Gigliarano & Francesco Maria Chelli, 2014. "A nonparametric Gini concentration test for labour market analysis," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - Italian Review of Economics, Demography and Statistics, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 68(3-4), pages 135-142, July-Dece.
    6. repec:spr:italej:v:4:y:2018:i:3:d:10.1007_s40797-018-0077-3 is not listed on IDEAS
    7. Riphahn, Regina T. & Zibrowius, Michael, 2015. "Apprenticeship, Vocational Training and Early Labor Market Outcomes in East and West Germany," IZA Discussion Papers 8901, Institute of Labor Economics (IZA).
    8. Corseuil, Carlos Henrique & Foguel, Miguel N. & Gonzaga, Gustavo, 2019. "Apprenticeship as a stepping stone to better jobs: Evidence from Brazilian matched employer-employee data," Labour Economics, Elsevier, vol. 57(C), pages 177-194.
    9. repec:eee:ecmode:v:68:y:2018:i:c:p:178-189 is not listed on IDEAS
    10. Chiara Gigliarano & Francesco Chelli, 2016. "Measuring inter-temporal intragenerational mobility: an application to the Italian labour market," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 89-102, January.
    11. Ghirelli, Corinna & Havari, Enkelejda & Santangelo, Giulia & Scettri, Marta, 2018. "Does on-the-job training help graduates find a job? Evidence from an Italian region," Working Papers 2018-14, Joint Research Centre, European Commission (Ispra site).
    12. 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.
    13. Federico Quaresima & Fabio Fiorillo & Raffaella Santolini, 2018. "Does Political Affiliation Matter On Post-Parliamentary Careers In The Boards Of Public Enterprises?," Working Papers 429, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    14. José Luis Viveros Añorve, 2015. "Towards a more effective poverty reduction in Mexico: a general equilibrium assessment," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 4(1), pages 75-107, March.

    More about this item

    Keywords

    apprenticeship; temporary work; permanent work; regression discontinuity; hazard function;

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • 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

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