Investigando l'effeto della legislazione sul lavoro in un mercato del lavoro duale: Evidenze dal mercato del lavoro Italiano.

This study investigates the relation linking employment protection legislation and firms’ training provision. To do so, I exploit the reduction in firing cost for firms with more than 15 employees and the hiring subsidy introduced by the Jobs Act in 2015 in Italy. The result obtained using a difference in discontinuity identification strategy shows that, after the introduction of the Jobs Act the actual number of trained worker has overall increased. Indeed, the reduction in firing cost associated with the new open ended contract increased firms’ propensity to train fixed term workers due to its positive impact on temporary to permanent conversion rate. At the same time small firms reacted to the hiring subsidy reducing the use of temporary contracts.