Does Apprenticeship Improve Job Opportunities? A Regression Discontinuity Approach

44 Pages Posted: 4 Dec 2013

See all articles by Matteo Picchio

Matteo Picchio

Marche Polytechnic University - Department of Economic and Social Science; IZA Institute of Labor Economics; SHERPPA - Ghent University

Stefano Staffolani

Polytechnic University of Marche - Faculty of Economics

Abstract

In Italy the reforms of the last twenty years shaped a dual labour market with different levels of employment protection for permanent jobs, on one side, and temporary jobs like apprenticeships and fixed-term contracts, on the other side. The main difference between apprentices and other types of temporary workers is that the former should receive firm-provided training. The firm incentive in hiring apprentices consists in the possibility to pay lower wages and in a reduction in labour taxes.Using an Italian administrative longitudinal dataset containing information on all the job contracts started between January 2009 and June 2012, we estimate hazard functions towards permanent jobs and contrast the ones of apprentices with those of other types of temporary workers. The hazard function estimates based on a regression discontinuity approach affirm that apprenticeships are sorts of "long entrance halls" towards open-ended contracts, especially within the same firm where the apprenticeship was performed.

Keywords: apprenticeship, temporary work, permanent work, regression discontinuity, hazard function

JEL Classification: C36, C41, J24, J41

Suggested Citation

Picchio, Matteo and Staffolani, Stefano, Does Apprenticeship Improve Job Opportunities? A Regression Discontinuity Approach. IZA Discussion Paper No. 7719, Available at SSRN: https://ssrn.com/abstract=2363206 or http://dx.doi.org/10.2139/ssrn.2363206

Matteo Picchio (Contact Author)

Marche Polytechnic University - Department of Economic and Social Science ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
+39 071 220 7176 (Phone)

HOME PAGE: http://www.univpm.it/matteo.picchio

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

SHERPPA - Ghent University ( email )

Tweekerkenstraat 2
Ghent, B-9000
Belgium

Stefano Staffolani

Polytechnic University of Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

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