Changing labour market opportunities for young people in Italy and the role of the family of origin

This paper considers the increased incidence of insecure job conditions for young individuals entering the Italian labour market and their chances of moving to a more secure job-condition after a reasonable period of time. In particular, we investigate empirically whether and how long-term changes in labour market institutions and conditions have modified the role of the family of origin for both labour market entry and subsequent transitions. We use the Italian Households Longitudinal Study (Ilfi) and show that employment opportunities have changed quite significantly in Italy over the past three decades (from the late 1970s to the early 2000s). For an increasing share of young adults precariousness extends for quite a long period of the working life. The family of origin reduces the probability of insecurity both in the early 1980s and during the 1990s, but in a different way: in the early 1980s, it has an effect in the entry year, but not subsequently; after the implementation of the Treu reform, its effect appears only in the years following the entry one. Our overall results suggest that the rapid expansion of insecure contractual arrangements in the 1990s-early 2000s have produced increasing difficulties in terms of transitions to a “better” job condition (i.e. into secure employment), which enhanced the role of the family of origin in overcoming them, generating new inequalities among young Italians.