The effects of youth labour market reforms: evidence from Italian apprenticeships.Authors: ALBANESE Andrea, CAPPELLARI Lorenzo, LEONARDI Marco.
Online First: 27/09/2019
In this paper, we estimate the causal effects of the 2003 reforms to the Italian apprenticeship contract that increased its legal length, allowed on-the-job training and introduced a minimum floor to apprentices’ wages. Using administrative data, we implement a covariate balancing propensity score and a difference-in-differences estimator. We find that the new contract improves the chances of an apprentice obtaining a permanent job in the same firm five years after hiring; however, this occurs more frequently in large firms. We also find sizeable, long-run wage effects that extend well beyond the legal duration of the apprenticeship contract. These effects are compatible with increased human capital accumulation, possibly due to the reformed training provisions.
Reference: ALBANESE Andrea, CAPPELLARI Lorenzo, LEONARDI Marco. The effects of youth labour market reforms: evidence from Italian apprenticeships. Oxford Economic Papers, 2019, n°gpz053, pp. 1-24.Keywords: