Abstract
Building on previous research, we address the debated question of whether temporary contractual arrangements are a stepping stone toward more stable and definitive forms of employment. In particular, we investigate the different performance of three types of contracts, fixed term, parasubordinate and apprenticeship contracts. In this study we prepared and reclassified a large observational dataset and applied propensity score estimates to a sample of over 600,000 workers observed through 2008–2015. Although the rationale behind labour market flexibilization has been partially successful in creating occupation in the country, this came at the cost of more insecure jobs and with workers being trapped into a loop of perennial renewals. Our analysis contributes effectively to the exploration of flexible term contract’ role as stepping-stone—or bottle necks—with respect to open ended contracts. We find no stepping-stone effect for fixed-term and parasubordinate contracts, together with a (weak) stepping-stone effect for apprenticeships.
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Notes
Within the framework of the recent reform of the Italian labour market (Law n. 92/2012), apprenticeship assumes a strategic role for youth inclusion in the labour market. Apprenticeship is defined as an “employment contract of indeterminate duration, the purpose of which is training and employment of the young” with an age limit of 15–25 years (training apprenticeship) or 18-29 years (professional apprenticeship and tertiary education and advanced research apprenticeship). Almost 90% of apprenticeship contracts last less than 3 years, and 50% are less than 3 months.
The parasubordinate work includes three types of contracts: Contratto di collaborazione coordinata e continuativa, the so-called Co.Co.Co., which at the present is only allowed in public bodies; Contratto di collaborazione a progetto, the so-called Co.Co.Pro.; and Prestazioni occasionali (occasional work), which can only be used for assignments of less than 30 days and a total yearly remuneration of less than 5,000 Euro.
Updates are produced quarterly.
The first norm concerning mandatory communications dates back to 1996, with article 9-bis of Decreto Legislativo n. 510/1996, converted into Law N. 608/1996, subsection 2. Law N. 296/2006 required the communications to be made online.
We have no clue of what happens before and in between contracts, but we can infer something about experience and education from changes in subsequent skills and achieved education levels.
We do not observe workers already working at the beginning of 2008 and who did not experience any change in their statutory situation at work—that is, no communications were made. As time goes by, we will eventually observe at least their retirement.
See the Appendix for the classification of professions according to skill level.
For our time spam, two reforms are relevant: the D.L. 167/2011, leading to the Testo Unico sull’Apprendistato, and the Fornero Reform, L. 92/2012.
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Bosco, M.G., Valeriani, E. The Road to Permanent Work in Italy: “It’s Getting Dark, Too Dark to See”. Ital Econ J 4, 385–419 (2018). https://doi.org/10.1007/s40797-018-0077-3
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DOI: https://doi.org/10.1007/s40797-018-0077-3