Collective Bargaining and the Evolution of Wage Inequality in Italy

31 Pages Posted: 11 May 2019

See all articles by Francesco Devicienti

Francesco Devicienti

University of Turin - Collegio Carlo Alberto; University of Turin - Department of Economics and Financial Sciences G. Prato

Bernardo Fanfani

University of Turin

Agata Maida

University of Turin

Multiple version iconThere are 2 versions of this paper

Date Written: June 2019

Abstract

Italian male wage inequality has increased at a relatively fast pace from the mid‐1980s until the early 2000s, while it has been persistently flat since then. We analyse this trend, focusing on the period of most rapid growth in pay dispersion. By accounting for worker and firm fixed effects, it is shown that workers' heterogeneity has been a major determinant of increased wage inequalities, while variability in firm wage policies has declined over time. We also show that the growth in pay dispersion has entirely occurred between livelli di inquadramento, that is, job titles defined by national industry‐wide collective bargaining institutions, for which specific minimum wages apply. We conclude that the underlying market forces determining wage inequality have been largely channelled into the tight tracks set by the centralized system of industrial relations.

Suggested Citation

Devicienti, Francesco and Fanfani, Bernardo and Maida, Agata, Collective Bargaining and the Evolution of Wage Inequality in Italy (June 2019). British Journal of Industrial Relations, Vol. 57, Issue 2, pp. 377-407, 2019. Available at SSRN: https://ssrn.com/abstract=3385661 or http://dx.doi.org/10.1111/bjir.12444

Francesco Devicienti (Contact Author)

University of Turin - Collegio Carlo Alberto ( email )

via Real Collegio 30
Moncalieri, Torino 10024
Italy

University of Turin - Department of Economics and Financial Sciences G. Prato ( email )

C. so Unione Sovietica, 218 Bis
Torino, 13820-4020
Italy

Bernardo Fanfani

University of Turin ( email )

Via Po 53
Torino, 10100
Italy

Agata Maida

University of Turin ( email )

Via Po 53
Torino, Turin - Piedmont 10100
Italy

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
0
Abstract Views
66
PlumX Metrics