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Title:From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity? PDF Logo
Authors:Ichino, Andrea
Mealli, Fabrizia
Nannicini, Tommaso
Issue Date:2006
Series/Report no.:IZA Discussion Papers 2149
Abstract:The diffusion of Temporary Work Agency (TWA) jobs originated a harsh policy debate and ambiguous empirical evidence. Results for the US, based on quasi-experimental evidence, suggest that a TWA assignment decreases the probability of finding a stable job, while results for Europe, based on the Conditional Independence Assumption (CIA), typically reach opposite conclusions. Using data for two Italian regions, we use a matching estimator to show that TWA assignments can be an effective springboard to permanent employment. We also propose a simulation-based sensitivity analysis, which highlights that only for one of these two regions our results are robust to specific failures of the CIA. We conclude that European studies based on the CIA should not be automatically discarded, but should be put under the scrutiny of a sensitivity analysis like the one we propose.
Subjects:matching estimation
temporary employment
JEL:C2
C8
J6
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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