Active Labor Market Policies and Transitions to Permanent Employment. The Potential of Administrative Data

This chapter aims at shedding some light on the effectiveness of existing Active Labor Market Policies. The main goal of this contribution is to show how it is possible to combine three sources of administrative data, namely the system of Compulsory Communications (Comunicazioni Obbligatorie CO), the archives of local agencies in charge of active labor market policies, and the equivalent economic/financial status indicator (EES) data drawn from fiscal assistance centers. We also discuss possible identification strategies to assess the effectiveness of active labor market programs which exploit discontinuity stemming from labor market reforms. Finally, we use event history analysis to model the time to exit to a permanent job as a function of individual characteristics previous labor experience and participation to programs.