The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships.Authors: ALBANESE Andrea, Cappellari Lorenzo, LEONARDI Marco.
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.
Reference: ALBANESE Andrea, CAPPELLARI Lorenzo, LEONARDI Marco. The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships. LISER, 2017, Working Papers n°2017-13, 36 p.Keywords:
JEL: C21, J24, J41.