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Earnings Dispersion, Low Pay and Household Poverty in Italy, 1977-1998

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Author Info
Andrea Brandolini () (Bank of Italy, Economic Research Department)
Piero Cipollone () (Bank of Italy, Economic Research Department)
Paolo Sestito () (Bank of Italy and Ministry of Labour)

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Abstract

The paper presents estimates on the dispersion of earnings and the proportion of low-paid employees in Italy in the period 1977-1998, and it measures the differential impact of low pay and employment status on householdsÂ’ poverty. The estimates are computed from the micro-data of the Historical Archive of the Bank of ItalyÂ’s Survey of Household Income and Wealth. The distribution of net earnings narrowed from the late 1970s until the end of the 1980s, abruptly widened in the early 1990s and experienced little modification in the rest of the decade. The trend in the share of low-paid workers evolved in parallel with that of earnings inequality. Finally, the probability of being in poverty is more closely correlated with the number of household members employed, particularly other than the head, than with low pay.

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File URL: http://www.bancaditalia.it/pubblicazioni/econo/temidi/td01/td427_01/td427/tema_427_01.pdf
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Paper provided by Bank of Italy, Economic Research Department in its series Temi di discussione (Economic working papers) with number 427.

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Date of creation: Nov 2001
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Handle: RePEc:bdi:wptemi:td_427_01

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Related research
Keywords: earnings dispersion; low-paid workers;

Find related papers by JEL classification:
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
I3 - Health, Education, and Welfare - - Welfare and Poverty

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Andrea Brandolini, 1999. "The Distribution of Personal Income in Post-War Italy: Source Description, Data Quality, and the Time Pattern of Income Inequality," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 58(2), pages 183-239, September.
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  2. Christopher Erickson & Andrea Ichino, 1995. "Wage Differentials in Italy: Market Forces, Institutions, and Inflation," NBER Chapters, in: Differences and Changes in Wage Structures, pages 265-306 National Bureau of Economic Research, Inc. [Downloadable!]
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  3. Cowell, Frank A., 1989. "Sampling variance and decomposable inequality measures," Journal of Econometrics, Elsevier, vol. 42(1), pages 27-41, September. [Downloadable!] (restricted)
  4. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-58, May.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Antonio Ciccone & Federico Cingano & Piero Cipollone, 2006. "The private and social return to schooling in Italy," Temi di discussione (Economic working papers) 569, Bank of Italy, Economic Research Department. [Downloadable!]
    Other versions:
  2. Boeri, Tito & Brandolini, Andrea, 2005. "The Age of Discontent: Italian Households at the Beginning of the Decade," IZA Discussion Papers 1530, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Fiorillo, Damiano, 2005. "Le determinanti del capitale sociale in Italia, 1993-2000: una analisi esplorativa," MPRA Paper 796, University Library of Munich, Germany. [Downloadable!]
  4. Andrea Brandolini & Piero Cipollone, 2001. "Multifactor Productivity and Labour Quality in Italy, 1981-2000," Temi di discussione (Economic working papers) 422, Bank of Italy, Economic Research Department. [Downloadable!]
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