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Wage Differentials and Temporary Jobs in Italy

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  • Matteo, PICCHIO

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

Abstract

The focus of this paper is to analyse the wage effects of temporary jobs using the 2000 and 2002 waves of the Survey of Italian Households’ Income and Wealth (SHIW). Exploiting the short longitudinal dimension of the survey and taking into account of individual-and job-specific unobservable components result in an estimated wage penalty for temporary workers of around 12-13%. Furthermore, there is evidence of higher wage returns to seniority for temporary workers, generating a reduction in the wage gap by about 2.3 percentage points after one year of tenure.

Suggested Citation

  • Matteo, PICCHIO, 2006. "Wage Differentials and Temporary Jobs in Italy," Discussion Papers (ECON - Département des Sciences Economiques) 2006033, Université catholique de Louvain, Département des Sciences Economiques.
    • Handle: RePEc:ctl:louvec:2006033
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2006-33.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Matteo Picchio, 2008. "Temporary Contracts and Transitions to Stable Jobs in Italy," LABOUR, CEIS, vol. 22(s1), pages 147-174, June.
    2. Caterina Giannetti & Marianna Madia & Luigi Moretti, 2014. "Job insecurity and financial distress," Applied Financial Economics, Taylor & Francis Journals, vol. 24(4), pages 219-233, February.
    3. Bosio, Giulio, 2009. "Temporary employment and wage gap with permanent jobs: evidence from quantile regression," MPRA Paper 16055, University Library of Munich, Germany.
    4. Tealdi, Cristina, 2011. "Typical and atypical employment contracts: the case of Italy," MPRA Paper 39456, University Library of Munich, Germany.
    5. Matteo PICCHIO, 2006. "Temporary Jobs and State Dependence in Italy," Working Papers 272, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    6. Colella, Fabrizio, 2014. "Women's Part-Time - Full-Time Wage Differentials in Europe: an Endogenous Switching Model," MPRA Paper 55287, University Library of Munich, Germany.
    7. Panchanan Das, 2018. "Wage Gap and Employment Status in Indian Labour Market - Quantile Based Counterfactual Analysis," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 4(2), pages 117-134, December.
    8. Giulio Bosio, 2014. "The Implications of Temporary Jobs on the Distribution of Wages in Italy: An Unconditional IVQTE Approach," LABOUR, CEIS, vol. 28(1), pages 64-86, March.
    9. Chiara BROCCOLINI & Marco LILLA & Stefano STAFFOLANI, 2010. "A Search Model in a Segmented Labour Market: the Odd Role of Unions," Working Papers 349, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    10. Lorenzo Cappellari & Carlo Dell’Aringa & Marco Leonardi, 2012. "Temporary Employment in Italy," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(1), pages 55-62, 04.
    11. Fabio Clementi & Michele Giammatteo, 2012. "The labour market and the distribution of income: an empirical analysis for Italy," Working Papers 42-2012, Macerata University, Department of Studies on Economic Development (DiSSE), revised Jul 2014.
    12. Lorenzo Cappellari & Carlo Dell’Aringa & Marco Leonardi, 2012. "Temporary Employment in Italy," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(01), pages 55-62, April.
    13. Matteo Picchio, 2012. "The Dynamics of Unemployment, Temporary and Permanent Employment in Italy," AIEL Series in Labour Economics, in: Tindara Addabbo & Giovanni Solinas (ed.), Non-Standard Employment and Quality of Work. The Case of Italy, edition 1, chapter 7, pages 127-147, AIEL - Associazione Italiana Economisti del Lavoro.
    14. repec:ces:ifodic:v:10:y:2012:i:1:p:18176942 is not listed on IDEAS
    15. 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.

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    More about this item

    Keywords

    Temporary employment; fixed-term; contracts; wage differential; returns to seniority; individual effects; firm effects;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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