A first impact evaluation of the Italian Dignity Decree’s effects on young workers

Nicola Caravaggio ()
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Nicola Caravaggio: Università di Roma Tre

No 280, Departmental Working Papers of Economics - University 'Roma Tre' from Department of Economics - University Roma Tre

Abstract: The so-called Dignity Decree (DD), entered into force in summer 2018, represented one of the main legislative interventions of employment protection within the Italian labor market. The aim of this work is to evaluate the impact of DD on the career paths of young workers (15-29) recently entered in the labor market. Specically, we focus on their probability of being employed after 1 year or more from the implementation of DD as well as the probability of reaching an open-ended contract within the same time horizons. The analysis relies on an exclusive sample of Compulsory Communications data using a Propensity Score Matching estimation. Results show a poor eect of the reform in boosting the persistence in the labor market. Nonetheless, the positive impact is more pronounced when focused on the probability of being employed with an open-ended contract, which increased by 2.3% after one year.

Keywords: Italian labor market; Dignity Decree; Employment; Propensity Score Matching (search for similar items in EconPapers)
JEL-codes: C55 J08 J21 (search for similar items in EconPapers)
Pages: 54
Date: 2024-03
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