Are traineeships stepping-stones for youth working careers in Italy?

Abstract

PurposeThe purpose of this paper is to provide an evaluation of traineeships as an active labour policy for young people in Italy. The role of traineeships as a formative experience for improving youth employment is stated by law and the specific evaluation of the regional Quality Traineeships Programme allowed for a more in-depth analysis of the role quality criteria plays in traineeship implementation.Design/methodology/approachSuch evaluation relies on administrative data, while a counterfactual approach was used to compare trainees to unemployed young people registered with Public Employment Services. The impact of traineeships on youth careers was measured in terms of employment probability, but innovatively, the actual placement was measured in terms of both hiring and along a “quality” metric with respect to entry in the labour market. It is reasonable to assume that young people are interested in traineeships as an investment towards a more satisfying career (not just as a gateway to recruitment). At last, the authors introduce a persistency analysis of the effects on youth employment rates.FindingsThe results show that traineeships hinder rapid transition to work, but they are effective stepping-stones for young people seeking a quality career. A benefit of 7 percentage points was estimated on the probability of finding a quality job after completing the traineeship and a long-lasting effect on trainees’ employment rate is demonstrated by the persistency analysis. These benefits are strengthened for participants in the Quality Traineeships Programme, confirming the relevance of desirable learning and contractual conditions in supporting the effectiveness of internships in Italy.Originality/valueAs far as the authors know, this paper is the first study that specifically refers to traineeships as an active policy in Italy and the questions resulting from the research suggest new trends in the debate over the role of policies for supporting youth employment. The administrative archives used in the analysis and the persistence effects on youth employment rates are further innovations to the empirical literature on the effectiveness of Italy’s training programmes.