Arbeitspapier

The Effects of Unions on Wage Inequality : The Italian Case in the 1990s

In this paper we analyse the contribution of union activity to reducing earnings inequality. Given the specific nature of the system of industrial relations, Italian unions may contribute to inequality reduction through either national bargaining (i.e. reducing between-sector differentials) and/or local bargaining (i.e. reducing within-establishment inequality). After reviewing aggregate evidence on the first dimension, we explore the second route making use of matched employer-employees data-set, surveyed in 1995 by Eurostat. We pay great care to the potential endogeneity of local bargaining, and we find that the widespread adoption of local bargaining, by reducing the implicit price of individual characteristics, effectively contributes to inequality reduction.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 1385

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Subject
unions
wage inequality
Lohnstruktur
Gewerkschaft
Tarifpolitik
Firmentarifvertrag
Italien

Event
Geistige Schöpfung
(who)
Checchi, Daniele
Pagani, Laura
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2004

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Checchi, Daniele
  • Pagani, Laura
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2004

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