The effects of youth labour market reforms: evidence from Italian apprenticeships

Lorenzo Cappellari, Andrea Albanese, Marco Leonardi

Research output: Contribution to journalArticlepeer-review

Abstract

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.
Original languageEnglish
Pages (from-to)1-24
Number of pages24
JournalOxford Economic Papers
DOIs
Publication statusPublished - 2021

Keywords

  • apprenticeship

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