Atypical Contracts and Labour Demand: Evidence from Firm-Level Italian Data

The paper provides an analysis of the firm-level determinants of atypical employment in Italy. Using a logit model, some evidence is found that the probability of stipulating atypical contracts is greater for large, northern Italian firms, investing in ICT and characterized by strong union presence. Subsequently, the estimation of a labour demand equation for a panel of Italian firms, shows that atypical labour demand is less persistent and more sensitive to shock than standard labour demand. The inclusion of a variable on internal flexibility tools shows that they are complementary to the use of open-ended contracts and substitutes for atypical ones.