Wage Inequality, Employment Structure and Skill-Biased Change in Italy

25 Pages Posted: 30 May 2008

See all articles by Paolo Naticchioni

Paolo Naticchioni

University of Rome I; University of Cassino

Andrea Ricci

University of Perugia; ISFOL

Emiliano Rustichelli

ISFOL

Abstract

This paper investigates empirically the relation between wage inequality, employment structure, and skill-biased change in Italy between 1993 and 2004. Applying quantile decomposition analysis, we point out that changes in wage inequality are mainly driven by a decrease in educational premia over time, whereas changes in employment structure play a negligible role. This evidence suggests that changes in wage inequality in Italy can hardly be interpreted in terms of a skill-biased change, and the evidence is further reinforced by a set of descriptive statistics showing that the increasing educational attainments of the workforce might have been crowded out by a stable trend in the demand for skills.

Suggested Citation

Naticchioni, Paolo and Ricci, Andrea and Rustichelli, Emiliano, Wage Inequality, Employment Structure and Skill-Biased Change in Italy. LABOUR, Vol. 22, Issue s1, pp. 27-51, June 2008. Available at SSRN: https://ssrn.com/abstract=1138856 or http://dx.doi.org/10.1111/j.1467-9914.2008.00416.x

Paolo Naticchioni (Contact Author)

University of Rome I ( email )

Piazzale Aldo Moro 5
Roma, Rome 00185
Italy

University of Cassino ( email )

Cassino
Italy

Andrea Ricci

University of Perugia

Via Pascoli 22
Perigoa, 06121
Italy

ISFOL

Italy

Emiliano Rustichelli

ISFOL ( email )

Italy

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