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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)

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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Bibliographic Info

Paper provided by Bank of Italy, Economic Research and International Relations Area 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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Keywords: earnings dispersion; low-paid workers;

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References

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  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.
  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.
  3. Cowell, Frank A., 1989. "Sampling variance and decomposable inequality measures," Journal of Econometrics, Elsevier, vol. 42(1), pages 27-41, September.
  4. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-58, May.
  5. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1.
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Citations

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Cited by:
  1. Paolo Naticchioni & Andrea Ricci, 2010. "Decreasing Wage Inequality in Italy: The Role of Supply and Demand for Education," Working Papers CELEG 1004, Dipartimento di Economia e Finanza, LUISS Guido Carli.
  2. Tito Boeri & Andrea Brandolini, 2004. "The Age of Discontent: Italian Households at the Beginning of the Decade," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 63(3-4), pages 449-487, December.
  3. cipollone piero & Anita Guelfi, 2003. "tax credit policy and firms' behaviour: the case of subsidy to open-end labour contract in italy," Temi di discussione (Economic working papers) 471, Bank of Italy, Economic Research and International Relations Area.
  4. repec:ept:journl:v:xxix:y:2012:i:344en:p:193-219 is not listed on IDEAS
  5. 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 and International Relations Area.
  6. Declich, Carlo & Polin, Veronica, 2003. "Absolute poverty and the cost of living: an experimental analysis for italian households," MPRA Paper 33339, University Library of Munich, Germany.
  7. Andrea Borgarello & Francesco Devicienti, 2002. "What Accounts For the Rise in Wage Inequality in Italy? Evidence from Administrative Matched Employer-Employee Data, 1985-1996," LABORatorio R. Revelli Working Papers Series 18, LABORatorio R. Revelli, Centre for Employment Studies.
  8. Fiorillo, Damiano, 2005. "Le determinanti del capitale sociale in Italia, 1993-2000: una analisi esplorativa," MPRA Paper 796, University Library of Munich, Germany.
  9. Paolo Naticchioni & Andrea Ricci & Emiliano Rustichelli, 2008. "Wage Inequality, Employment Structure and Skill-biased Change in Italy," LABOUR, CEIS, vol. 22(s1), pages 27-51, 06.
  10. Riccardo Massari, 2009. "Is income becoming more polarized Italy? A closer look with a distributional approach," Working Papers 1, Doctoral School of Economics, Sapienza University of Rome.
  11. Paolo Naticchioni & Andrea Ricci & Emiliano Rustichelli, 2007. "Wage Structure, Inequality And Skill-Biased Change: Is Italy An Outlier?," Quaderni del Dipartimento di Economia, Finanza e Statistica 38/2007, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  12. 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 and International Relations Area.
  13. Nicoletta Rosati, 2009. "A note on welfare and the economic shocks," Economics Bulletin, AccessEcon, vol. 29(3), pages 1621-1630.
  14. Francesco Devicienti & Andrea Borgarello, 2001. "Trends in the Italian Earnings Distribution, 1985-1996," LABORatorio R. Revelli Working Papers Series 2, LABORatorio R. Revelli, Centre for Employment Studies.

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