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Do Satisfactory Working Conditions Contribute to Explaining Earning Differentials in Italy? A Panel Data Approach

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  • Ambra Poggi

Abstract

. The aim of the present paper is to analyse the wage differentials associated with non‐pecuniary working conditions using objective and subjective data. In some situations a worker can be compensated for unsatisfactory working conditions via a higher wage; conversely, in the presence of segmented labor markets, higher wages can be associated with favorable non‐monetary working conditions. Moreover, a positive correlation between wages and satisfactory working conditions exists when there is efficient union bargaining regarding both wages and working conditions. In the present study, we estimate a wage equation with variables that capture workers’ subjective views regarding their current non‐pecuniary working conditions, allowing for unobserved individual heterogeneity. Our results reveal a positive wage differential associated with satisfactory non‐pecuniary working conditions. This result supports the segmentation labor market hypothesis. The focus of the study is on Italian workers, but we compare the core results the those obtained for other Mediterranean countries.

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  • Ambra Poggi, 2007. "Do Satisfactory Working Conditions Contribute to Explaining Earning Differentials in Italy? A Panel Data Approach," LABOUR, CEIS, vol. 21(4‐5), pages 713-733, December.
    • Handle: RePEc:bla:labour:v:21:y:2007:i:4-5:p:713-733
    DOI: 10.1111/j.1467-9914.2007.00394.x
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    3. Akshay Vij & Lynette Washington & Sally Weller & Jacob Irving & Ilke Onur, 2024. "Labour Market Preferences of Retrenched Australian Auto Industry Workers for Job Quality and Meaningful Work," The Economic Record, The Economic Society of Australia, vol. 100(329), pages 209-233, June.
    4. S. Cicognani & M. Cioni & M. Savioli, 2016. "The secret to job satisfaction is low expectations: How perceived working conditions differ from actual ones," Working Papers wp1083, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. Christophe J. Nordman & Smriti Sharma, 2018. "Pecuniary returns to working conditions in Vietnam," WIDER Working Paper Series wp-2018-72, World Institute for Development Economic Research (UNU-WIDER).
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    9. Simona Cicognani & Martina Cioni & Marco Savioli, 2017. "Conditions at work: how actual and expected working conditions drive perception," Working Paper series 17-17, Rimini Centre for Economic Analysis.
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