There is little evidence as to the effectiveness of incentives for the conversion of fixed-term contracts into permanent jobs. We aim at filling this gap by studying a recent Italian program which provides benefits for employers who convert contracts for workers in specific demographic groups (females, younger men). Due to funding constraints, the incentives were available only for a few days, allowing us to employ a difference-in-differences strategy between similar short periods. Using administrative microdata for the Veneto region, we show that the subsidy increased conversions by 83% on average, with no substitution effects over time or across groups of workers. JEL codes: J21, J41, J48
CITATION STYLE
Ciani, E., & de Blasio, G. (2015). Getting stable: an evaluation of the incentives for permanent contracts in Italy. IZA Journal of European Labor Studies, 4(1). https://doi.org/10.1186/s40174-015-0030-5
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