Dignity by Decree? Temporary Jobs Reforms and Workers' Wages

with Marco Palladino and Matteo Sartori


In recent years, several European countries have modified policies concerning temporary employment contracts, oscillating between liberalizations and restraints in a bid to balance employment flexibility and job stability. We study the effects of a 2018 reform that tightened fixed-term contracts legislation on wage dynamics. Our analysis, grounded in extensive administrative data tracking within-firm, within-individual transitions from fixed-term to permanent contracts in Italy, unveils a significant decline in the wage premium accompanying contract conversions post-reform.

Giuseppe Grasso
Giuseppe Grasso
Ph.D. Candidate in Economics