Technical Progres and Wage Dispersion in Italy: Evidence from Firm's Data
AbstractIn this paper we test for the effect of technological progress on the labour demand and relative earnings by skill in Italy from 1986 to 1990. We consider a large panel of firms, about 36,000: the data allow us to construct a proxy of the use of new technology by each firm. Our main conclusions are that: (i) wage dispersion in Italy did not increase by the same extent as in the US and UK; (ii) technological progress led to a remarkable increase in the employment of skilled (captured in our data by white-collars) vis-à-vis blue-collar workers. However relative earnings did not experience a similar rise. We suggest that both a shift in the supply of skills and the features of the Italian wage bargaining system counteracted the rise in earnings dispersion.
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Bibliographic InfoArticle provided by ENSAE in its journal Annals of Economics and Statistics.
Volume (Year): (1996)
Issue (Month): 41-42 ()
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