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Getting stable: an evaluation of the incentives for permanent contracts in Italy

Emanuele Ciani () and Guido de Blasio ()

IZA Journal of European Labor Studies, 2015, vol. 4, issue 1, 1-29

Abstract: There is little evidence as to the effectiveness of incentives for the conversion of fixed-term contracts into permanent jobs. We aim at filling this gap by studying a recent Italian program which provides benefits for employers who convert contracts for workers in specific demographic groups (females, younger men). Due to funding constraints, the incentives were available only for a few days, allowing us to employ a difference-in-differences strategy between similar short periods. Using administrative microdata for the Veneto region, we show that the subsidy increased conversions by 83% on average, with no substitution effects over time or across groups of workers. JEL codes: J21, J41, J48 Copyright Ciani and de Blasio; licensee Springer. 2015

Keywords: Fixed-term contracts; Permanent employment; Diff-in-diffs (search for similar items in EconPapers)
JEL-codes: J21 J41 J48 (search for similar items in EconPapers)
Date: 2015
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