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The Covariance Structure of Italian Male Wages

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Author Info
Cappellari, Lorenzo

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Abstract

Using an unbalanced panel of Italian male wages covering the 1974-88 interval this study estimates the parameters of the wage covariance structure by minimum distance. Estimated variance components models allow for a linear trend in permanent wages, so that wage profiles convergence can be assessed by considering the covariance between intercepts and slopes of such individual trends. Evidence of permanent wage convergence is found in the overall wage distribution, but not within white collar workers: this contracts with human capital interpretations of wage dynamics and suggests that other factors, such as the egalitarian wage setting framework fully effective until the mid-80's, could have played a major role in shaping the wage distribution. Copyright 2000 by Blackwell Publishers Ltd and The Victoria University of Manchester

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Publisher Info
Article provided by University of Manchester in its journal Manchester School.

Volume (Year): 68 (2000)
Issue (Month): 6 (December)
Pages: 659-84
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Handle: RePEc:bla:manchs:v:68:y:2000:i:6:p:659-84

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  1. Elena Giarda, 2007. "The Worsening of Wage Expectations in Italy: a Study Based on Administrative data," LABORatorio R. Revelli Working Papers Series 57, LABORatorio R. Revelli, Centre for Employment Studies. [Downloadable!]
  2. Paolo Manasse & Luca Stanca & Alessandro Turrini, 2001. "Wage Premia and Skill Upgrading in Italy: Why didn’t the Hound Bark?," Working Papers 37, University of Milano-Bicocca, Department of Economics, revised Nov 2001. [Downloadable!]
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  3. Francesco Devicienti, 2001. "Estimating Poverty Persistence in Britain," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B2-3, International Conferences on Panel Data. [Downloadable!]
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This page was last updated on 2009-11-22.


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