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Teleworkers in Italy: who are they? Do they make more?

Author

Listed:
  • Claudia Pigini
  • Stefano Staffolani

Abstract

Purpose - The purpose of this paper is to investigate the determinants of the probability of being a teleworker and the extent of earnings differentials between teleworkers and traditional employees. Design/methodology/approach - The analysis is grounded on a theoretical framework depicting endogenous telework assignment and wage variations based on individual bargaining. The empirical strategy allows for non-random telework assignment, generating from individual- and job-specific observed as well as unobserved factors. Findings - Results are based on the Italian labor force survey and uncover a key role of gender, higher education and family composition as determinants of the probability of teleworking. Furthermore, teleworkers enjoy a wage premium ranging between 2.7 and 8 percent. Originality/value - Accounting for observed individual and job-specific effects, by both standard linear regression and propensity score matching, largely reduces the extent of wage premium emerging from unconditional descriptives; the results of an endogenous switching regression model however suggest that failing to properly care for unobserved factors leads to the underestimation of returns to telework.

Suggested Citation

  • Claudia Pigini & Stefano Staffolani, 2019. "Teleworkers in Italy: who are they? Do they make more?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(2), pages 265-285, February.
    • Handle: RePEc:eme:ijmpps:ijm-07-2017-0154
    DOI: 10.1108/IJM-07-2017-0154
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    Citations

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    Cited by:

    1. Nicola Matteucci & Francesco Orazi, 2018. "Crisi e transizione: spunti per un?agenda di ricerca interdisciplinare," PRISMA Economia - Societ? - Lavoro, FrancoAngeli Editore, vol. 2018(1-2), pages 5-17.
    2. Moens, Eline & Verhofstadt, Elsy & Van Ootegem, Luc & Baert, Stijn, 2022. "Disentangling the Attractiveness of Telework to Employees: A Factorial Survey Experiment," IZA Discussion Papers 15190, Institute of Labor Economics (IZA).
    3. Sergio Scicchitano, 2018. "Commenti," PRISMA Economia - Societ? - Lavoro, FrancoAngeli Editore, vol. 2018(1-2), pages 119-123.
    4. Kosteas, Vasilios D. & Renna, Francesco & Scicchitano, Sergio, 2022. "Covid-19 and Working from Home: toward a "new normal"?," GLO Discussion Paper Series 1013, Global Labor Organization (GLO).
    5. Bonacini, Luca & Gallo, Giovanni & Scicchitano, Sergio, 2021. "Will it be a shecession? The unintended influence of working from home on the gender wage gap related to the COVID-19 pandemic," GLO Discussion Paper Series 771, Global Labor Organization (GLO).
    6. Luca Bonacini & Giovanni Gallo & Sergio Scicchitano, 2021. "Working from home and income inequality: risks of a ‘new normal’ with COVID-19," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 303-360, January.
    7. Eleonora Pieroni & Claudia Pigini & Stefano Staffolani, 2018. "I lavoratori "agili". Chi sono? Quanto guadagnano?," PRISMA Economia - Societ? - Lavoro, FrancoAngeli Editore, vol. 2018(1-2), pages 67-76.
    8. Manuel Denzer & Philipp Grunau, 2021. "The Impacts of Working from Home on Individual Health and Well-being," Working Papers 2106, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.

    More about this item

    Keywords

    Wage differentials; Propensity score matching; Teleworking; Switching regression model; J22; J31; J81; C34; C14;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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