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

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

No 10766, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: covariate balancing; youth employment; permanent work; apprenticeship; propensity score (search for similar items in EconPapers)
JEL-codes: J24 J41 C21 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2017-05
New Economics Papers: this item is included in nep-dem, nep-eur, nep-hrm, nep-lma and nep-ltv
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Citations: View citations in EconPapers (7) Track citations by RSS feed

Forthcoming in: Oxford Economic Papers

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Related works:
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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