The Covariance Structure of Italian Male Wages
AbstractUsing 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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Bibliographic InfoArticle provided by University of Manchester in its journal Manchester School.
Volume (Year): 68 (2000)
Issue (Month): 6 (December)
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