Public sector pay and regional competitiveness: a first look at regional public-private wage differentials in Italy

Arbeitspapier

This paper investigates regional public-private wage differentials in Italy. Following the recent wave of reforms that significantly changed wage setting and employment relations in both sectors increasing decentralisation in collective bargaining and enforcing a privatisation of public sector employment contracts - we present new estimates of the public-private wage gap by geographical location. We report both 'standardised' public-private wage differentials, as well as estimates obtained using Geographically Weighted Regressions methods. We show that significant differences exist in public-private wage differentials across Italian regions, and that the latter can be partly explained by local labour market conditions affecting the private sector and only marginally the public sector. Differences in public-private wage differentials across regions are expected to determine several imbalances in terms of 'wait' unemployment and recruitment problems in the different areas.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 1828

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Public Sector Labor Markets
• Subject: public-private wage differentials ; regional labour market ; geographically weighted regressions ; Regionale Lohnstruktur ; Privatwirtschaft ; Öffentlicher Sektor ; Italien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dell'Aringa, Carlo ; Lucifora, Claudio ; Origo, Federica
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/33367
• Last update: 10.03.2025, 11:42 AM CET