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Technical Progres and Wage Dispersion in Italy: Evidence from Firm's Data

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  • Paola CASAVOLA
  • Andréa GAVOSTO
  • Paolo SESTITO

Abstract

In 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 Info

Article provided by ENSAE in its journal Annals of Economics and Statistics.

Volume (Year): (1996)
Issue (Month): 41-42 ()
Pages: 387-412

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Handle: RePEc:adr:anecst:y:1996:i:41-42:p:16

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Cited by:
  1. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," Working Papers, Barcelona Graduate School of Economics 70, Barcelona Graduate School of Economics.
  2. Davide Antonioli & Paolo Pini & Rocco Manzalini, 2011. "Innovation, Workers Skills and Industrial Relations: Empirical Evidence from Firm-level Italian Data," Working Papers 201106, University of Ferrara, Department of Economics.
  3. Alfonso Gambardella & David Ulph, 2002. "Technology, Entrepreneurship, And Inequality," LEM Papers Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy 2002/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  4. Vivarelli, Marco, 2012. "Innovation, Employment and Skills in Advanced and Developing Countries: A Survey of the Literature," IZA Discussion Papers 6291, Institute for the Study of Labor (IZA).
  5. Massimiliano BRATTI & Nicola MATTEUCCI, 2004. "Is There Skill-Biased Technological Change in Italian Manufacturing? Evidence from Firm-Level Data," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 202, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  6. Mariacristina Piva & Marco Vivarelli, 2004. "The determinants of the skill bias in Italy: R&D, organisation or globalisation?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(4), pages 329-347.
  7. Paolo Ghinetti, 2007. "Technology Innovations, Organisational Changes and Firms’ Wages in Italy," Working Papers, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont 111, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
  8. Paolo Manasse & Luca Stanca, 2002. "Working on the Train: Technology, Trade and Wages in Italian Manufacturing," Working Papers, University of Milano-Bicocca, Department of Economics 61, University of Milano-Bicocca, Department of Economics, revised Nov 2002.
  9. Francesco Devicienti & Agata Maida, 2004. "Rigidità salariali e ruolo delle istituzioni: l'evidenza empirica da microdati," LABORatorio R. Revelli Working Papers Series, LABORatorio R. Revelli, Centre for Employment Studies 35, LABORatorio R. Revelli, Centre for Employment Studies.
  10. Paolo Naticchioni & Andrea Ricci & Emiliano Rustichelli, 2008. "Wage Inequality, Employment Structure and Skill-biased Change in Italy," LABOUR, CEIS, CEIS, vol. 22(s1), pages 27-51, 06.

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