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Wage Mobility in the Italian Labour Market: Comparing Search, Matching and Training Models

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  • Sulis Giovanni

Abstract

This paper studies the sources of wage growth and the process of turnover for a sample of Italian male workers employed in the private sector. Different theories based on the idea of job-specific skill investment are tested and discussed. Results indicate a consistent proportion of wage cuts upon moving to a new job and some evidence of positive duration dependence in reservation wages. This suggests the importance of matching and human capital components in wage determination. However, mobility patterns and wage dynamics can hardly be explained by a single model; each model is instead only able alone to capture some stylised facts. Heterogeneity in mobility rates plays also an important role.

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Bibliographic Info

Article provided by Società editrice il Mulino in its journal Politica economica.

Volume (Year): (2007)
Issue (Month): 2 ()
Pages: 109-140

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Handle: RePEc:mul:je8794:doi:10.1429/24804:y:2007:i:2:p:109-140

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Keywords: wage mobility; on-the-job search; matching; training; duration dependence; heterogeneity.;

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  1. Agar Brugiavini, 1998. "An Empirical Analysis of Interfirm Mobility in Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 57(1), pages 1-34, April.
  2. Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710 Elsevier.
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