IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Labour market transition in Italy: an empirical investigation

  • Bosio, Giulio

In this paper I study the effects of the introduction of Treu package on the hazard rate of moving from a temporary job to a stable work in Italy. In order to enhance the flexibility of labour market and to stress the capabilities to create job, a progressive liberalization of flexible contracts has been adopted in Italy during the ‘90s, widening their scope and easing their adoption. The empirical exercise is carried out using an administrative dataset, Clap, extracted by the social security archives for the years 1992-2002. I apply a parametric and semi-parametric continuous time duration model to investigate whether the recent reform has changed the pattern of duration dependence in temporary employment duration. The main findings emphasize how the Treu package has substantially reduced the positive duration dependence in the hazard rate of moving from temporary to permanent employment. This result is robust to different specifications adopted for the baseline hazard. However, an even stronger conclusion concerns the temporary work agency (TWA) employment which exhibits a negative duration dependence in the post-reform period, probably indicating a negative relation between contract duration and the probability to moving into permanent employment for this contractual type. Finally I find large differences in terms of individual and job-related characteristics.

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:
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18901.

in new window

Date of creation: Sep 2008
Date of revision:
Handle: RePEc:pra:mprapa:18901
Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page:

More information through EDIRC

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. Lorenzo Corsini & Marco Guerrazzi, 2007. "The Transition from Temporary to Permanent Employment: Evidence from Tuscany," LABOUR, CEIS, vol. 21(2), pages 303-332, 06.
  2. J. Ignacio Garcia-Perez & Fernando Muñoz Bullon, 2007. "Transitions into permanent employment in Spain : an empirical analysis for young workers," Business Economics Working Papers wb073808, Universidad Carlos III, Departamento de Economía de la Empresa.
  3. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Social, Employment and Migration Working Papers 35, OECD Publishing.
  4. O Blanchard & A Landier, 2002. "The Perverse Effects of Partial Labour Market Reform: fixed--Term Contracts in France," Economic Journal, Royal Economic Society, vol. 112(480), pages F214-F244, June.
  5. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053.
  6. F. Alfonso Arellano, 2005. "Evaluating The Effects Of Labour Market Reforms “At The Margin” On Unemployment And Employment Stability: The Spanish Case," Economics Working Papers we051205, Universidad Carlos III, Departamento de Economía.
  7. Sala, Hector & Silva, José I. & Toledo, Manuel E., 2008. "Flexibility at the Margin and Labor Market Volatility in OECD Countries," IZA Discussion Papers 3293, Institute for the Study of Labor (IZA).
  8. Fabio Berton, 2008. "The (long) run out of unemployment: are temporary jobs the shortest way?," LABORatorio R. Revelli Working Papers Series 76, LABORatorio R. Revelli, Centre for Employment Studies.
  9. Giuseppe Tattara & Marco Valentini, 2006. "Labour Market Segmentation, Flexibility and Precariousness in the Italian North East," Working Papers 2006_03_EV, Department of Economics, University of Venice "Ca' Foscari".
  10. Tito Boeri & Pietro Garibaldi, 2007. "Two Tier Reforms of Employment Protection: A Honeymoon Effect?," Carlo Alberto Notebooks 37, Collegio Carlo Alberto.
  11. 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.
  12. Matteo PICCHIO, 2007. "The Dynamics of Unemployment, Temporary and Permanent Employment in Italy," Working Papers 286, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  13. Tommaso NANNICINI, 2004. "The Take-off of Temporary Employment in the Italian Labor Market," Economics Working Papers ECO2004/09, European University Institute.
  14. 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.
  15. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2007. "Temporary jobs: Port of entry, Trap, or just Unobserved Heterogeneity?," LABORatorio R. Revelli Working Papers Series 68, LABORatorio R. Revelli, Centre for Employment Studies.
  16. Andrea Montanino & Paolo Sestito, 2003. "Le molte funzioni del lavoro interinale in Italia: da strumento di flessibilità a contratto di prova," Rivista di Politica Economica, SIPI Spa, vol. 93(2), pages 115-148, March-Apr.
  17. Catalina Amuedo-Dorantes, 2000. "Work transitions into and out of involuntary temporary employment in a segmented market: Evidence from Spain," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(2), pages 309-325, January.
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:pra:mprapa:18901. 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: (Ekkehart Schlicht)

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.