[Journal:] IZA Journal of European Labor Studies [ISSN:] 2193-9012 [Volume:] 4 [Year:] 2015 [Issue:] 6 [Pages:] 1-29
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.