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

Abstract

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Does on-the-job training help graduates find a job? Evidence from an Italian region

“…Compared to other types of temporary contracts, apprenticeships are found to be more effective in leading workers to a stable job relationship, especially within the same firm where the apprenticeship was undertaken. Investigating the same topic, Albanese et al (2017), focus on the impact of the 2003 reform of the Italian apprenticeship contract, showing the positive effect of the new apprenticeship on the transition to permanent employment, mostly in large firms.…”

Job mobility and heterogeneous returns to apprenticeship training in Italy

“…Finally, building on Albanese et al (2017), Cappellari et al (2012) and d 'Agostino et al (2018), we provide further evidence on the effects of the reform of the apprenticeship regime implemented in Italy by the Biagi Law, which lessened the stringency of the norms on the training content delivered by firms within the overhaul of the labour market towards the reduction of employment protection legislation (EPL) 'at the margin'. Hence, we contribute to the literature on the differential impact of alternative training schemes of apprenticeship on the accumulation and transferability of the skills of young workers.…”

“…form of cheap and temporary labour supply (Albanese et al, 2017;Bardazzi and Duranti, 2016;ISFOL, 2010;Steedman, 2012). The Pacchetto Treu revised the apprenticeship by applying the contract to young workers aged 16-26 years for a duration between eighteen months and four years,and by requiring that training ensured by the employer consisted of a theoretical part, which had to take place outside the firm by means of complementary courses, and a practical, firm-based training provided during the work time.…”

“…In addition, the external training could only be provided by accredited institutes sponsored by regions and had to be no less than 120 hours per year (Albanese et al, 2017). Interestingly, this scheme guaranteed some benefits to the employer, implying a lower labour cost to compensate for the external, formal training, such as a reduction in apprentices' payroll taxes.…”

Buy flexible, pay more: The role of temporary contracts on wage inequality

“…In fact, Figure 7b shows that the wage gap between apprentices and openended workers is now stable and negative across the entire distribution. This wage penalty is likely related to the wage regulation of the apprenticeship and the fact that this type of worker receives part of her total employee income as training (Albanese et al, 2019).…”