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Skilled and unskilled wage dynamics in Italy in the 1990s: changes in individual characteristics, institutions, trade and technology

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  • Anna Maria Falzoni
  • Alessandra Venturini
  • Claudia Villosio

Abstract

In this paper, we use individual micro data on workers combined with industry and regional data to study the wage dynamics of skilled and unskilled workers in Italy in the 1991-1998 period. In contrast to previous empirical studies, our data make it possible to analyse, within a single framework, the role of many of the factors indicated in the literature as possible determinants of skilled and unskilled wage dynamics: changes in the individual characteristics of workers, changes in labour market institutions, increasing international integration, and skill-biased technological progress. Our results show that international integration, both in terms of trade in goods and in terms of international labour mobility, plays a role in determining the wage dynamics of skilled (white-collar) and unskilled (blue-collar) workers. Moreover, in line with labour economics research, our findings show that the individual characteristics of workers and the institutional variables are more relevant in explaining skilled and unskilled wage dynamics than wage differentials.

Suggested Citation

  • Anna Maria Falzoni & Alessandra Venturini & Claudia Villosio, 2011. "Skilled and unskilled wage dynamics in Italy in the 1990s: changes in individual characteristics, institutions, trade and technology," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(4), pages 441-463.
    • Handle: RePEc:taf:irapec:v:25:y:2011:i:4:p:441-463
    DOI: 10.1080/02692171.2010.529428
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    References listed on IDEAS

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    1. Alessia Matano & Paolo Naticchioni, 2010. "Trade and Wage Inequality: Local versus Global Comparative Advantages," The World Economy, Wiley Blackwell, vol. 33(12), pages 1757-1787, December.
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    Cited by:

    1. Irene Iodice & Chiara Tomasi, 2016. "Skill upgrading and wage gap: a decomposition analysis for Italian manufacturing firms," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 201-232, August.
    2. Accetturo, Antonio & Bugamelli, Matteo & Lamorgese, Andrea R., 2013. "Skill upgrading and exports," Economics Letters, Elsevier, vol. 121(3), pages 417-420.
    3. Philipp Hühne & Dierk Herzer, 2017. "Is inequality an inevitable by-product of skill-biased technical change?," Applied Economics Letters, Taylor & Francis Journals, vol. 24(18), pages 1346-1350, October.
    4. Ivan Etzo & Carla Massidda & Paolo Mattana & Romano Piras, 2017. "The impact of immigration on output and its components: a sectoral analysis for Italy at regional level," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(3), pages 533-564, December.
    5. Elisa Borghi & Rosario Crinò, 2013. "Service offshoring and wages: worker-level evidence from Italy," LIUC Papers in Economics 264, Cattaneo University (LIUC).

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