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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. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-58, May.
  2. Cowell, Frank A., 1989. "Sampling variance and decomposable inequality measures," Journal of Econometrics, Elsevier, vol. 42(1), pages 27-41, September.
  3. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1, October.
  4. 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.
  5. Christopher L. Erikson & Andrea Ichino, 1994. "Wage Differentials in Italy: Market Forces, Institutions, and Inflation," NBER Working Papers 4922, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. 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).
  2. 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.
  3. 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.
  4. Lorenzo Cappellari & Marco Leonardi, 2013. "Earnings Instability and Tenure," CESifo Working Paper Series 4145, CESifo Group Munich.
  5. Federico Cingano & Piero Cipollone, 2009. "The private and social return to schooling in Italy," Questioni di Economia e Finanza (Occasional Papers) 53, Bank of Italy, Economic Research and International Relations Area.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. Nicoletta Rosati, 2009. "A note on welfare and the economic shocks," Economics Bulletin, AccessEcon, vol. 29(3), pages 1621-1630.
  12. 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.
  13. Fiorillo, Damiano, 2005. "Le determinanti del capitale sociale in Italia, 1993-2000: una analisi esplorativa," MPRA Paper 796, University Library of Munich, Germany.

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