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Wage expectations in northern and southern Italian regions: An interpretation based on psychological and social factors

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Author Info
MARIA DE PAOLA
CLAUDIO LUPI
PATRIZIA ORDINE

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Abstract

Individual wage expectations of Italian unemployed are studied. The analysis is carried out separately for the North-Central and southern Italian regions using semiparametric additive models. Results show a marked difference in expectations formation across regions. We argue that as far as the labour market information in the South is less diffuse and more ambiguous than in the North, the divergence between the econometric model based on a utility-maximisation mainstream theory and the actual wage expectation mechanism may be large. A tentative explanation based on psychological and social factors is offered.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal International Review of Applied Economics.

Volume (Year): 19 (2005)
Issue (Month): 3 (July)
Pages: 343-358
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Handle: RePEc:taf:irapec:v:19:y:2005:i:3:p:343-358

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Related research
Keywords: Wage expectations; regional disparities; generalised additive models; JEL Classification: D84; J30; J60;

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References listed on IDEAS
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  1. Jeff Dominitz & Charles F. Manski, 1994. "Using Expectations Data to Study Subjective Income Expectations," NBER Working Papers 4937, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  1. Giorgio Brunello & Claudio Lupi & Patrizia Ordine, 2005. "Labor Taxes in Local Labor Markets: Evidence from Italian Regions," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(1), pages 29-54, September. [Downloadable!]
  2. Mauro Costantini & Claudio Lupi, 2006. "Divergence and long-run equilibria in Italian regional unemployment," Applied Economics Letters, Taylor and Francis Journals, vol. 13(14), pages 899-904, November. [Downloadable!] (restricted)
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