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Temporary Employment, Job Mobility and Wage Growth in Italy

Paolo Ghinetti ()

Rivista italiana degli economisti, 2013, issue 2, 175-200

Abstract: This paper analyses the differential in annual wage growth between temporary and permanentworkers in Italy, separately for stayers (wage growth within the same workplace) and movers (betweenjobs via job mobility). To this purpose, we use the 1995-2001 Italian component of the ECHP(European Community Household Panel). Given the potential endogeneity of the contract type on wagedynamics, our estimates are based on a fixed effects specification. The results for the movers indicatethat wage growth of temporary workers is lower than that of permanent employees; by converse, the twogroups share similar rates of on-the-job wage growth, i.e. growth among the stayers. The results also showthat both the duration of the temporary contract and the age of the worker matter: the wage growth islower among young employees with temporary contracts, especially if they change workplace in the yearof observation.

Keywords: Temporary contracts; wage growth; job mobility; Italy. (search for similar items in EconPapers)
Date: 2013
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Handle: RePEc:mul:jqat1f:doi:10.1427/73847:y:2013:i:2:p:175-200