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: apprenticeship; permanent work; youth employment; covariate balancing; propensity score (search for similar items in EconPapers)
JEL-codes: C21 J24 J41 (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
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Published - published in: Oxford Economic Papers, 2021, 73 (1), 98 - 121

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Related works:
Journal Article: The effects of youth labour market reforms: evidence from Italian apprenticeships (2021)
Working Paper: The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships (2017)
Working Paper: The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships (2017)
Working Paper: The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships (2017)
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