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Collective Bargaining and Within-Establishment Pay Inequality in Italy

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  • Carlo DELL’ARINGA
  • Claudio LUCIFORA
  • Nicola ORLANDO

    (Universita' Cattolica di Milano)

Abstract

This paper investigates the structure of within-establishment wage inequality in Italy, using linked employer-employee data (European Structure of Earnings Survey). The effect of work organi- sation practices, pay policies, collective bargaining procedures and industrial relations settings are analysed in the context of wage differentials in the firm. The main findings suggest that employees’ characteristics, work organisation practices and firm size are relevant in shaping pay inequality within establishments. Decentralised bargaining is shown to be associated with higher (unconditional) within-establishment wage dispersion; however, when checking both for worker and firm heterogeneity, the association changes sign or is not (statistically) significant. Finally, when the endogenous sorting of establishments is adequately modelled, no causal effect of decentralised bargaining on within-establishment pay inequality is detected.

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Bibliographic Info

Article provided by Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore in its journal Rivista Internazionale di Scienze Sociali.

Volume (Year): 113 (2005)
Issue (Month): 2 ()
Pages: 241-265

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Handle: RePEc:vep:journl:y:2005:v:113:i:2:p:241-265

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Related research

Keywords: new work organisation; employees representation; variable pay policies.;

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