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Far away from a skill-biased change: falling educational wage premia in Italy

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  • Paolo Naticchioni
  • Andrea Ricci
  • Emiliano Rustichelli

Abstract

In this article we apply quantile regressions to investigate the evolution of Educational Wage Premia (EWP) in Italy from 1993 to 2004. Using the Survey of the Household Income and Wealth (SHIW, Bank of Italy) and different classifications for educational attainments, we show that, in the private sector, EWP have generally decreased over time, considering both continuous and categorical specifications for education, at all quantiles of the wage distribution. Different patterns are observed in the public sector, where EWP remain basically stable over time. A number of robustness checks and various econometric specifications are also applied in order to address sample selection issues. Our findings provide additional evidence in favour of the thesis that the increasing patterns in inequality and EWP, and the related interpretations concerning skill-biased changes, are much less pronounced in continental Europe than in Anglo-Saxon countries.

Suggested Citation

  • Paolo Naticchioni & Andrea Ricci & Emiliano Rustichelli, 2010. "Far away from a skill-biased change: falling educational wage premia in Italy," Applied Economics, Taylor & Francis Journals, vol. 42(26), pages 3383-3400.
    • Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3383-3400
    DOI: 10.1080/00036840802112455
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    1. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Rising Wage Inequality: The Role of Composition and Prices," Harvard Institute of Economic Research Working Papers 2096, Harvard - Institute of Economic Research.
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    1. Corrado Andini, 2022. "Tertiary education for all and wage inequality: policy insights from quantile regression," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 50(6), pages 1281-1296, November.
    2. Giuseppe Croce & Edoardo Di Porto & Emanuela Ghignoni & Andrea Ricci, 2013. "Employer education, agglomeration and workplace training: poaching vs knowledge spillovers," Working Papers in Public Economics 162, Department of Economics and Law, Sapienza University of Roma.
    3. Cinthya G. Caamal Olvera, 2017. "Decreasing returns to schooling in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(1), pages 27-63.
    4. Giovanni Abbiati & Carlo Barone, 2015. "Is university education worth the investment? The expectations of upper secondary school seniors and the role of family background," FBK-IRVAPP Working Papers 2015-13, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    5. Giuseppe Croce & Andrea Ricci & Giuliana Tesauro, 2019. "Pensions reforms, workforce ageing and firm-provided welfare," Applied Economics, Taylor & Francis Journals, vol. 51(32), pages 3480-3497, July.
    6. Giovanni Abbiati & Carlo Barone, 2017. "Is university education worth the investment? The expectations of upper secondary school seniors and the role of family background," Rationality and Society, , vol. 29(2), pages 113-159, May.
    7. Paolo Naticchioni & Andrea Ricci, 2009. "Decreasing Wage Inequality in Italy: The Role of Supply and Demand for Education," Working Papers - Dipartimento di Economia 9-DEISFOL, Dipartimento di Economia, Sapienza University of Rome, revised 2009.
    8. Annamaria Simonazzi & Paolo Villa & Federico Lucidi, 2008. "Continuity and Change in the Italian Model: Italy's Laborious Convergence towards the European Social Model," Working Papers in Public Economics 108, Department of Economics and Law, Sapienza University of Roma.
    9. Paolo Naticchioni & Michele Raitano & Claudia Vittori, 2016. "La Meglio Gioventù: earnings gaps across generations and skills in Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 233-264, August.
    10. Paolo Naticchioni & Andrea Ricci & Emiliano Rustichelli, 2007. "Wage Structure, Inequality And Skill-Biased Change: Is Italy An Outlier?," Quaderni del Dipartimento di Economia, Finanza e Statistica 38/2007, Università di Perugia, Dipartimento Economia.
    11. Noe', Chiara, 2009. "Subject of degree and the gender wage gap: Evidence from Italy," MPRA Paper 47289, University Library of Munich, Germany.
    12. Paola Gritti & Riccardo Leoni, 2013. "The impact on wages of generic competencies, psychological capital, new work practices and digital technologies," Working Papers (2013-) 1301, University of Bergamo, Department of Management, Economics and Quantitative Methods.
    13. Riccardo Leoni & Paola Gritti, 2017. "Institutional Wage Setting, Distinctive Competencies and Wage Premia," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(1), pages 71-111, March.
    14. Leonardo Becchetti & Stefano Castriota & Ermanno Tortia, 2013. "Productivity, wages and intrinsic motivations," Small Business Economics, Springer, vol. 41(2), pages 379-399, August.
    15. Michele Gazzola & Daniele Mazzacani, 2019. "Foreign language skills and employment status of European natives: evidence from Germany, Italy and Spain," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(4), pages 713-740, November.
    16. Patrizia Ordine & Giuseppe Rose, 2015. "The effect of family background, university quality and educational mismatch on wage: an analysis using a young cohort of Italian graduates," Education Economics, Taylor & Francis Journals, vol. 23(2), pages 213-237, April.
    17. Silvia Domeneghetti & Andrea Vaona, 2015. "Regional aspects of aggregate profitability dynamics in Italy," Working Papers 04/2015, University of Verona, Department of Economics.
    18. Giangregorio Luca & Fana Marta, 2021. "The structure of the labour market and wage inequality using RIF-OLS: the Italian case," JRC Working Papers on Labour, Education and Technology 2021-11, Joint Research Centre.
    19. FORNERO Elsa & ROMITI Agnese & ROSSI Cristina, 2013. "Does Home Ownership Crowd Out Investment in Children's Human Capital?," LISER Working Paper Series 2013-21, Luxembourg Institute of Socio-Economic Research (LISER).

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