Table 2 - uploaded by Fabio Berton
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Are temporary jobs a port of entry into permanent employment? In this paper we argue that the answer crucially depends on the type of temporary contracts being considered, as the different contracts observed in practice are typically characterized by varying combinations of training, tax-incentives and EPL provisions. We base our empirical evidence...
Context in source publication
Context 1
... observe 6096 individuals aged 15 to 39 in 1998; about 46% of them are women. Table 2 details the entry contract shares in 1998: 33% of individuals start with an open ended contract, 27% as apprentice, about 10% start with each of the other contracts. Hence more than 56% of the individuals start their labour market career in a temporary contract. ...
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Citations
... L'Unione europea considera il lavoro nonstandard come un modo per favorire l'occupazione, in quanto strumento di flessibilità nell'organizzazione del lavoro sia per le imprese che per i lavoratori. Tuttavia, almeno per quanto riguarda l'Italia, il lavoro atipico sembra non aver rappresentato un trampolino verso il lavoro stabile, quanto piuttosto una 'trappola' in occupazioni precarie (Barbieri e Scherer 2009;Berton et al. 2011). I cambiamenti nella composizione dell'occupazione hanno un forte impatto sulle funzioni del sistema di protezione sociale che mirano a compensare le 5 Trasformazioni del mercato del lavoro e rischi per la protezione sociale eventuali perdite di salario. ...
Il Rapporto Inapp 2022 intende dare un contributo alla costruzione di una base conoscitiva che possa costituire un punto di riferimento per coloro che disegnano e attuano le politiche del lavoro e per tutti coloro che operano nel mondo del lavoro.
Nel campo del mercato del lavoro vanno interpretati e risolti i nuovi problemi che si presentano principalmente con riguardo alle nuove forme e ai nuovi contenuti delle prestazioni di lavoro (Industria 4.0, lavoro sulle piattaforme, smart working ecc.) e, di conseguenza, sul piano della regolamentazione dei rapporti di lavoro. Peraltro, la modesta dinamica della produttività e il crescente distacco tra questa e la dinamica salariale richiedono strategie integrate di politiche industriali e politiche del lavoro per garantire un riequilibrio nella distribuzione funzionale del reddito e una protezione dei salari reali.
... Reforms primarily targeted workers in disadvantaged categories, such as young workers, and aimed to expand their employment opportunities by introducing new TCs. In this regard, the literature is rich in studies showing that young people are frequently employed with TCs (Cahuc and Postel-Vinay 2002;Boeri and Garibaldi 2007;Berton et al. 2011;Eurofound 2017) and that the use of such contracts by firms decreases with employees' age and job tenure (Booth et al. 2002;Bruno et al. 2013;Guell and Petrongolo 2007;Picchio 2008;Pavlopoulos 2009;Givord and Lionel 2015). ...
The voluntary mobility of employees who change employers for a better job remains an unexplored area of labour market transitions in many European countries. We analyse whether and how the recent great economic recession has contributed to modifications in such voluntary job mobility when employees have a temporary contract in France, Italy and Spain. We analyse cross-sectional data from the EU-SILC survey for two sub-periods: 2005-2008 and 2009-2015. We find that employees who have invested in human capital, who are young, and who work more than 40 hours per week are more likely than their counterparts to change employers for a better opportunity given a temporary contract. After the great recession, we observe a curbing of the studied voluntary job mobility that is likely attributable to the difficulty experienced by employees in finding a job that provides more benefits than their current one, with heterogeneous effects across socioeconomic and demographic characteristics and the country of residence.
... Larger firms, instead, appeared less responsive to the hiring subsidies, and only when combined with lower firing costs. Instead of substituting temporary with permanent employment, they probably also increased the use of fixed-term contracts and of promotions to OEC, a hint that larger firms did not give up on long probationary periods (Berton et al. 2011). The reforms have benefitted domestic workers over foreigners, and those with a lower or more general human capital. ...
... bad reputation due to temporary contracts in the past) or other reasons generating trapping in a particular career pattern. See Berton et al. [2011] for a discussion. goes by. ...
... It is only when combined with EPL reduction (regime 3) that the generous HI scheme for 2015 also increases the probability that unemployed workers get an OEC also in large firms. The probability of getting an OEC in small firms reinforcesnot so much in magnitude, but in being present over all the observed unemployment durationwhile that of an exit to flexible employment turnsalthough in only two monthspositive, a possible signal that large firms in particular may still prefer to use flexible employment as a probationary period, a possibility also suggested in Berton et al. [2011] and in Boeri and Garibaldi [2019]. When the HI is reduced in 2016 (regime 4) the impact on the probability to get an OEC roughly halves both in large and small firms, and when it is withdrawn in 2017 (regime 5) almost no effect survives. ...
... Larger firms, instead, appeared less responsive to the hiring subsidies, and only when combined with lower firing costs. Instead of substituting temporary with permanent employment, they probably also increased the use of fixed-term contracts and of promotions to OEC, a hint that larger firms did not give up on long probationary periods (Berton et al. 2011). The reforms have benefitted domestic workers over foreigners, and those with a lower or more general human capital. ...
... bad reputation due to temporary contracts in the past) or other reasons generating trapping in a particular career pattern. See Berton et al. [2011] for a discussion. goes by. ...
... It is only when combined with EPL reduction (regime 3) that the generous HI scheme for 2015 also increases the probability that unemployed workers get an OEC also in large firms. The probability of getting an OEC in small firms reinforcesnot so much in magnitude, but in being present over all the observed unemployment durationwhile that of an exit to flexible employment turnsalthough in only two monthspositive, a possible signal that large firms in particular may still prefer to use flexible employment as a probationary period, a possibility also suggested in Berton et al. [2011] and in Boeri and Garibaldi [2019]. When the HI is reduced in 2016 (regime 4) the impact on the probability to get an OEC roughly halves both in large and small firms, and when it is withdrawn in 2017 (regime 5) almost no effect survives. ...
... In particular, many studies investigate whether fixed-term jobs constitute a stepping stone to permanent jobs or a dead-end precarious-job trap. Most papers find support for the stepping-stone hypothesis, especially in Europe, but results vary considerably depending on the context of each country (see, among others, Booth et al., 2002;Autor and Houseman, 2010 ;Ichino et al., 2008;Berton et al., 2011 ;and Picchio and Staffolani, 2017 ). ...
... A source of concern is that the incentives for firms to provide training to temporary workers are lower as the probability of a job mismatch is larger for these workers. In fact, the available evidence show that temporary workers are on average less likely to receive training from their firms than permanent workers (see Autor, 2003;Bassanini et al. 2007;Berton et al., 2011;Cabrales et al., 2014;OECD, 2014 ). There is, however, a large heterogeneity of temporary arrangements varying with respect to the amount of training provided by employers. ...
... There is, however, a large heterogeneity of temporary arrangements varying with respect to the amount of training provided by employers. In particular, there is evidence that temporary contracts that provide training are more likely to lead to permanent jobs ( Picchio and Staffolani, 2017 ;Berton et al., 2011 ). ...
The objective of this paper is to evaluate the Brazilian Apprenticeship program adopted at a large scale since 2000. In particular, we investigate whether the program is a better stepping stone to permanent jobs when compared to other forms of temporary jobs. Similar to other apprenticeship initiatives around the world, the Brazilian program trains young workers under special temporary contracts aiming to help them successfully complete the transition from school to work. We make use of a matched employee-employer dataset covering all formal employees in Brazil, including apprentices. Our identification strategy exploits a discontinuity in the eligibility to enter the program in the early 2000s, when 17 was the age limit to take part in the program. This strategy allows us to consider selection based on unobservable characteristics. We find that the program increases the probability of employment in permanent jobs and decreases turnover rates and formal labor market experience in 2-3- and 4-5-year horizons. These results are consistent with a positive effect of the program on reservation utilities of workers and on their efforts to expand skills. This is also confirmed by the data as we find substantial impacts on schooling attainment. We also find evidence that the skill requirements of the apprentices’ occupation affect the likelihood of obtaining an open-ended job in the short run and the education achievement in the medium run. The results also evince much larger effects of the program for workers who had their first job in large firms.
... Interestingly, this phenomenon is contextualised in a labour market where the percentage of employees with a TC is similar for France and Italy, at 11.1% and 10.3%, respectively, while the percentage is almost double for Spain, at approximately 20%. Since the late 1990s, these countries have experienced considerable growth in temporary jobs, primarily due to labour market reforms that liberalised and spread the use of different types of TCs to reduce both unemployment and employment protection (i.e., Bentolila et al., 2012;Berton et al., 2011). Compared to Spain, the lower percentages of employees with a TC in Italy and France might be due to not only the timing of the above-mentioned legislation and its strictness but also the characteristics of the sample analysed (continuously employed in the 12 months of reference). ...
What mechanisms govern the mobility of employees who voluntarily switch employers for better opportunities , given a temporary contract? We attempt to answer this question by exploring this issue in Southern and Central European countries. We use cross-sectional data from the European Union Statistics on Income and Living Conditions survey for the 2005-2016 period. We estimate a flexible simultaneous equation model for binary responses by assuming the presence of an age-varying association between voluntary mobility and having a temporary contract. After accounting for several socio-demographic and economic variables, we find a non-linear decreasing relation between age and the outcomes, while we detect heterogeneous non-linear patterns in the association between voluntary mobility and having a temporary contract across countries. These insights can support policy-makers aiming to promote initiatives that facilitate the professional mobility of employees given a temporary contract for an efficient allocation of human capital in the production system.
... 3 See Casquel and Cunyat (2008) for a theoretical model which links firing costs and unemployment benefits to the conversion rates into permanent contracts. 4 In Belgium, Germany, Italy, the Netherlands, Sweden, and the UK, researchers find that temporary jobs are stepping stones into permanent jobs (Booth et al. 2002;Hagen 2003;Göbel and Verhofstadt 2008;Ichino et al. 2008;Picchio 2008;Hartman et al. 2010;Berton et al. 2011;Graaf-Zijl et al. 2011). Cockx and Picchio (2012) find that in Belgium even a job experience lasting no more than 3 months is able to increase the job stability of young unemployed school-leavers. ...
... Researchers therefore devoted some attention to understand the link between the contract type and the subsequent labour market career. Berton et al. (2011) studied the impact of different types of contracts on the probability of finding a permanent job. They exploited an administrative dataset for the period 1994-2004 and estimated dynamic multinomial logit models with fixed effects to allow for the non-random sorting of workers into different types of contracts. ...
In Italy the main difference between apprentices and other types of temporary workers is that apprentices must receive firm-provided training. The firm incentive in hiring apprentices consists in paying lower wages and labour taxes. Using an Italian administrative dataset containing information on the jobs started between January 2009 and June 2012, we estimate the effect of apprenticeship on the hazard function to a permanent job. Identification is based on a regression discontinuity design. We find that, for 29-year-old workers, apprenticeships are “long entrance halls” towards permanent contracts, especially within the firm where the apprenticeship is performed.
... A number of studies have analysed whether the temporary jobs introduced by the Treu Package have provided a springboard opportunity and a bridge, especially for young people, to permanent jobs (the so-called stepping stone effect) or if they have represented a dead end. This empirical literature found mixed results with respect to the effects on workers' perspectives and contractual careers (Barbieri and Scherer, 2009;Berton et al., 2011;Boeri and Garibaldi, 2007;Gagliarducci, 2005;Giannelli et al., 2012;Ichino et al., 2005Ichino et al., , 2008Kugler and Pica, 2008;Picchio, 2008). In particular, the probability of finding a permanent job increased with the duration of the contract and was positively influenced by the inclusion of training, but decreased with the number of repeated short-term jobs and career interruptions. ...
In this paper, we assess the effects of the labour market reforms to enhance flexibility, implemented at the beginning of the new millennium in Italy. We contribute to the debate on whether temporary contracts have positive or negative effects on employment and workers' perspectives of transition to a permanent job. We use an unexploited panel dataset of work histories for 2003–2010 and propose an estimation method based on Markov chains to measure the effects of the reforms on individual employment. Contrary to the goals of the reforms, our estimates show a small positive effect on job creation and a substitution of permanent contracts with temporary contracts, a risk amplified for young people and workers in the depressed areas of Southern Italy.
... For instance, some empirical results show that temporary contracts can act as a stepping stone to permanent employment, particularly for young people (e.g. Gagliarducci 2005; Barbieri and Sesisto 2008;Barbieri and Scherer 2009;Picchio 2008;Berton et al. 2011). Gagliarducci (2005) shows that the probability of transitioning from a temporary to a permanent job is associated with the duration of the contract, whereas an inverse relationship has been observed when temporary jobs are repeatedly interrupted. ...
... Gagliarducci (2005) shows that the probability of transitioning from a temporary to a permanent job is associated with the duration of the contract, whereas an inverse relationship has been observed when temporary jobs are repeatedly interrupted. Specifically, Berton et al. (2011) found that fixed-term contracts represent points of entry into permanent contracts with the same employer but not with a new employer. Moreover, Barbieri and Scherer (2009) noted that the stepping stone effect is hampered by discrimination against young workers, women, southern Italian workers, and less-educated workers see also Contini and Rapiti (1999). ...
The aim of this paper is to measure the effect of the interaction between age for the
population of males and females aged 18 to 74 and region-level GDP per capita on
labour market transition probabilities in Italy. We compare different occupational states
in a sample of males and females who remained in their region of residence at two
points in time (12 months apart). We estimate the transition probabilities using a
flexible hierarchical logit model with interaction effects between worker age and
region-level GDP per capita. We apply this model using longitudinal data from the
Italian Labour Force Survey that cover the 2004–2013 period. We find empirical support
for the assumption that people in the same age cohort have different labour market
opportunities based on the level of GDP per capita in their region
... Por ello, muchos estudios empíricos sobre la seguridad del empleo individual se centraron en el tipo de contrato. Se prestó particular atención a la transición de los contratos temporales a los indefinidos, partiendo del supuesto de que los individuos con contratos temporales experimentan mayor «inseguridad del empleo» que los que tienen contratos indefinidos (D'Addio y Rosholm 2005;Ichino, Mealli y Nannicini, 2008;Berton, Devicienti y Pacelli, 2011). No obstante, existen grandes diferencias en lo que respecta a la estabilidad laboral y otras condiciones de trabajo entre los trabajadores permanentes y temporales de los diversos países (Burchell 2002;Paugam y Zhou 2007;Comisión Europea, 2003;Booth, Francesconi y Frank, 2002). ...
... La segunda línea de investigación se centra en la estabilidad del puesto de trabajo, y pone de manifiesto que los contratos temporales a menudo se utilizan como alternativa barata a los contratos permanentes, lo que reduce dicha estabilidad sin un incremento agregado del empleo (Scherer, 2004;Güell y Petrongolo, 2007;Gash, 2008;Kahn, 2010;Baranowska y Gebel, 2010;Berton, Devicienti y Pacelli, 2011 Givord y Wilner, 2015). Así pues, según estos estudios, en ciertos países la inestabilidad laboral asociada a los contratos temporales se limita a los primeros años de vida activa, tras los cuales la persona disfruta de la seguridad asociada a los contratos permanentes, mientras que en otros la situación de inestabilidad laboral se prolonga mucho más. ...
Resumen
El interés político en la seguridad del empleo ya no se centra en la estabilidad laboral, sino en la empleabilidad, lo cual exige cambios en el modo de evaluar el desempeño de los jóvenes en el mercado de trabajo. Con datos sobre la evolución mensual de la situación laboral y sobre la duración real del empleo, se investigan ambos parámetros en jóvenes europeos unos cinco años después de finalizar sus estudios. El 40 por ciento sufre inestabilidad laboral pero su nivel de empleabilidad les permite encontrar rápidamente un empleo en caso de perderlo. Las autoras defienden políticas que refuercen la empleabilidad, una protección del empleo temporal más estricta y más gasto en políticas de activación (PAMT).
