We study the effect of tenure on earnings instability in Italy using the reforms of temporary employment contracts which affected the average tenure of workers differentially across cohorts. We develop a model of earnings dynamics and exploit the variation of tenure and instability over time and across birth cohorts to estimate policy-relevant parameters. Our results indicate that each year of tenure on the job reduces earnings instability by 11%; the drop is faster in the first three years of the match. Workers on a temporary contract have an earnings instability up to 100% higher than workers on a permanent contract.

Cappellari, L., Leonardi, M., Earnings Instability and Tenure, <<THE SCANDINAVIAN JOURNAL OF ECONOMICS>>, 2016; (118): 202-234. [doi:10.1111/sjoe.12142] [http://hdl.handle.net/10807/68781]

Earnings Instability and Tenure

Cappellari, Lorenzo;Leonardi, Marco
2016

Abstract

We study the effect of tenure on earnings instability in Italy using the reforms of temporary employment contracts which affected the average tenure of workers differentially across cohorts. We develop a model of earnings dynamics and exploit the variation of tenure and instability over time and across birth cohorts to estimate policy-relevant parameters. Our results indicate that each year of tenure on the job reduces earnings instability by 11%; the drop is faster in the first three years of the match. Workers on a temporary contract have an earnings instability up to 100% higher than workers on a permanent contract.
Inglese
Cappellari, L., Leonardi, M., Earnings Instability and Tenure, <<THE SCANDINAVIAN JOURNAL OF ECONOMICS>>, 2016; (118): 202-234. [doi:10.1111/sjoe.12142] [http://hdl.handle.net/10807/68781]
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10807/68781
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