Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307223 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17399
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This study analyses the impact of vouchers, an Italian alternative work arrangement, on earnings of atypical workers. We investigate whether this form of very flexible casual work substitutes for income from more standard labor contracts and from employment insurance programs. We rely on panel data estimators and a difference-in-differences specification that exploits a plausibly exogenous variation in the use of vouchers. Results show that around 50% of reductions in earnings from vouchers can be compensated by an increase in income derived from standard labor contracts and, to a much lower extent, by higher income from employment insurance. However, when considering a sub-sample of intensive users, only around 10% of losses in earnings from vouchers are compensated by other income sources. Thus, policies aiming at restricting or abolishing alternative work arrangements should be complemented by targeted interventions, particularly on intensive users, in order to mitigate the short-run earning losses of atypical workers.
Subjects: 
alternative work arrangements
policy evaluation
labor supply
cross-income elasticity
sample selection
difference-in-differences
event-study
JEL: 
J24
J22
D12
C13
C21
Document Type: 
Working Paper

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