The Take-off of Temporary Employment in the Italian Labor Market

Tommaso Nannicini

No ECO2004/09, Economics Working Papers from European University Institute

Abstract: This paper exploits the available empirical evidence in order to shed light on the take-o. of temporary employment in Italy. This kind of non-standard employment was recently legalized by the law 196/1997. The national data set of “Manpower” -one of the leading agencies in the Italian market- is used to address two related questions. One, what is the utilization intensity of temporary employment in each sector of the economy? And two, is it related to volatility or recent changes in the hiring pattern? To sidestep the fact that official statistics report all temps in the service sector, this paper combines the “Manpower” data set with other sources and estimate the share of temps within each industry. The utilization of temps appears to be positively correlated with production volatility. Recently, industries that have used temps more intensively experienced a drop in their share of total permanent employment. These findings support the view that the take-o. of temporary employment in Italy was essentially demand driven.

JEL-codes: J21 J23 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (12)

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