Do Flexible Employment Contracts Change Household Income Differences in Italy?

This paper examines whether the growing use of non-permanent contracts may have in uenced the intra-family income differences in Italy over time. After the 1996, a number of reforms were implemented to reduce the levels of employment protection. Thus we aim at providing evidence on the determinants of potential changes to personal level of income before and after the introduction of such rules. In particular, we calculate the contribution of each individual within the family using two Italian longitudinal data (namely ECHP and IT-Silc). We perform estimations for men and women, separately. Our results conrm that the amount of contribution changes over the span considered. Fathers are generally more likely to support other family members. Sons are instead money receivers, and the magnitude of the coefficient is especially large when labour market exibility has been already introduced. Individuals with part time temporary contracts face less favourable financial conditions. Finally, those who are out of the labour market (i.e. retired, unemployed, inactive) contribute negatively within the family.