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The effect of subsidies for transformations to permanent contracts. First evidence from an Italian policy

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  • Bruno Anastasia
  • Anna Giraldo
  • Adriano Paggiaro

Abstract

In October 2012 the Italian government introduced incentives to firms for the transformation of specific categories of contracts. The incentives were planned to last from October 17, 2012 to March 31, 2013, but after less than a month, the allocated funds were finished. After describing stabilizations and transformations in Italy and the Veneto region during recent years through the analysis of administrative data on active labor market policies, the aim of this paper is to provide some preliminary results for the effect of the policy in the Veneto region. Our results show that these incentives have increased the stabilization of allotted workers and they are robust with respect to different identification strategies. However, many financed stabilizations would have taken place even in the absence of incentives.

Suggested Citation

  • Bruno Anastasia & Anna Giraldo & Adriano Paggiaro, 2013. "The effect of subsidies for transformations to permanent contracts. First evidence from an Italian policy," Politica economica, Società editrice il Mulino, issue 2, pages 181-198.
    • Handle: RePEc:mul:je8794:doi:10.1429/76222:y:2013:i:2:p:181-198
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    More about this item

    Keywords

    Labour Market Policies; Impact Evaluation; Regression Discontinuity Design; Temporary Employment. JEL classification: J38; J62; J68.;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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