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Does Apprenticeship Improve Job Opportunities? A Regression Discontinuity Approach

Author

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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 for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7719
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    References listed on IDEAS

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    1. Bart Cockx & Matteo Picchio, 2012. "Are Short-lived Jobs Stepping Stones to Long-Lasting Jobs?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(5), pages 646-675, October.
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    Cited by:

    1. 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.
    2. Riphahn, Regina T. & Zibrowius, Michael, 2015. "Apprenticeship, Vocational Training and Early Labor Market Outcomes in East and West Germany," IZA Discussion Papers 8901, Institute for the Study of Labor (IZA).
    3. Carlos Henrique Corseuil & Miguel Foguel & Gustavo Gonzaga, 2016. "Apprenticeship as a stepping stone to beter jobs: Evidence from brazilian matched employer-employee data," Textos para discussão 651, Department of Economics PUC-Rio (Brazil).
    4. Andrea Albanese & Lorenzo Cappellari & Marco Leonardi, 2017. "The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships," DISCE - Working Papers del Dipartimento di Economia e Finanza def057, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    5. 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.
    6. repec:eee:ecmode:v:68:y:2018:i:c:p:178-189 is not listed on IDEAS
    7. 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.
    8. 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.
    9. 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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