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Regional Wage Differentials and Collective Bargaining in Italy

Author

Listed:
  • Carlo DELL’ARINGA

    (Universita' Cattolica di Milano)

  • Laura PAGANI

    (Universita' di Milano Bicocca, Milano)

Abstract

This paper uses ESES (European Structure of Earnings Survey) data for 1995 in order to investigate the impact of the Italian bargaining system on regional wage differentials and on local wage dispersion. The ESES survey is a large matched employer-employee data-set containing a wealth of information regarding characteristics of both workers and firms. The main findings suggest that in the south of Italy, in specific conditions, the minimum wages established by national sectoral collective agreements oblige some firms to pay higher wages than they would have done had there been no national agreement. In addition, wage dispersion in the south is more compressed for workers covered than for workers not covered by a national collective agreement. These results can be interpreted as indirect evidence for the fact that national collective bargaining creates regional «wage floors».

Suggested Citation

  • Carlo DELL’ARINGA & Laura PAGANI, 2005. "Regional Wage Differentials and Collective Bargaining in Italy," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 113(2), pages 267-287.
    • Handle: RePEc:vep:journl:y:2005:v:113:i:2:p:267-287
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    Citations

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    Cited by:

    1. Sarah Brown & Gurleen Popli & Alessandro Sasso, 2022. "Decomposing the gender reservation wage gap in Italy: A regional perspective," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 499-540, March.
    2. Jozef Konings & Luca Marcolin, 2014. "Do wages reflect labor productivity? The case of Belgian regions," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-21, December.
    3. Valeria Cirillo & Matteo Sostero & Federico Tamagni, 2017. "Innovation and within-firm wage inequalities: empirical evidence from major European countries," Industry and Innovation, Taylor & Francis Journals, vol. 24(5), pages 468-491, July.
    4. D'Amuri, Francesco & Giorgiantonio, Cristina, 2015. "The Institutional and Economic Limits to Bargaining Decentralization in Italy," IZA Policy Papers 98, Institute of Labor Economics (IZA).
    5. Francesco D'Amuri & Cristina Giorgiantonio, 2014. "Diffusion and outlook of firm-level bargaining in Italy," Questioni di Economia e Finanza (Occasional Papers) 221, Bank of Italy, Economic Research and International Relations Area.

    More about this item

    Keywords

    regional wage differentials; collective bargaining.;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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