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The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships

Andrea Albanese (), Lorenzo Cappellari and Marco Leonardi ()

No def057, DISCE - Working Papers del Dipartimento di Economia e Finanza from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: This paper estimates the causal effects of the 2003 reform of the Italian apprenticeship contract which aimed at introducing the “dual system” in Italy by allowing on-the-job training. The reform also increased the age eligibility of the apprenticeship contract and introduced a minimum floor to apprentices’ wages. Using administrative data and balancing techniques we find that five years after hiring, the new contract improves the chances of moving to a permanent job in the same firm, yet this happens mostly in large firms. There are also sizeable long-run wage effects of the reform, well beyond the legal duration of apprenticeships, compatible with increased human capital accumulation probably due to the training provisions of the reform.

Keywords: Apprenticeship; Permanent Work; Youth Employment; Covariate Balancing; Propensity Score . (search for similar items in EconPapers)
JEL-codes: J24 J41 C21 (search for similar items in EconPapers)
Pages: 33
Date: 2017-05
New Economics Papers: this item is included in nep-dcm, nep-dem, nep-lma and nep-ure
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http://dipartimenti.unicatt.it/economia-finanza-def057.pdf First version, 2017 (application/pdf)

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Working Paper: The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships (2017) Downloads
Working Paper: The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships (2017) Downloads
Working Paper: The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships (2017) Downloads
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