Labour contracts and stepping-stone effect in Italy: a multinomial analysis

Do short-term contracts facilitate the transition to permanent contracts? The authors use a rich administrative database for Italy to run a stepping stone analysis and evaluate which contractual agreements have more chances to lead to a permanent working position. They find that individual specific characteristics make it more likely for a worker to be employed with a specific contractual agreement and that the contribution toward more working stability varies with the previous contract. The authors conclude that fixed term positions act more as stumbling blocks than building blocks for open-ended contracts.