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Wage Premia and Skill Upgrading in Italy: Why didn't the Hound Bark?

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  • P. Manasse
  • L. Stanca
  • A. Turrini

Abstract

This paper presents firm level evidence on the dynamics of nonmanual wage premia and employment shares in Italian manufacturing during the nineties. We find that the relative stability of aggregate wage premia and employment shares hides o¤setting disaggregate forces. First, while technical progress raises the relative demand for skilled labor within firms, demand changes associated with exports reduce the relative demand for skills. Second, within the class of nonmanual workers, wage premia and employment shares of executives rise substantially, whereas those of clerks fall in a similar proportion. We also find that the export status of firms plays a key role in explaining labour market dynamics, as exporters account for most of both demand-related and technology-related shifts. Overall, our results for Italy question the general validity of the conventional view that emphasizes the role of labor market institutions, as opposed to trade and technology, in determining wage and employment dynamics in continental Europe.

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 423.

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Date of creation: 2001
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Handle: RePEc:bol:bodewp:423

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Citations

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Cited by:
  1. Andrea Caggese & Vicente Cuñat, 2011. "Financing constraints, firm dynamics, export decisions, and aggregate productivity," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 43160, London School of Economics and Political Science, LSE Library.
  2. Falzoni, Anna M. & Venturini, Alessandra & Villosio, Claudia, 2004. "Wage Differentials and International Trade in Italy Using Individual Micro Data 1991-1996," IZA Discussion Papers 1204, Institute for the Study of Labor (IZA).
  3. Paolo Manasse & Luca Stanca, 2002. "Working on the Train: Technology, Trade and Wages in Italian Manufacturing," Working Papers, University of Milano-Bicocca, Department of Economics 61, University of Milano-Bicocca, Department of Economics, revised Nov 2002.
  4. Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2003. "The Skill Bias Effect of Technological and Organisational Change: Evidence and Policy Implications," IZA Discussion Papers 934, Institute for the Study of Labor (IZA).
  5. Accetturo, Antonio & Bugamelli, Matteo & Lamorgese, Andrea R., 2013. "Skill upgrading and exports," Economics Letters, Elsevier, Elsevier, vol. 121(3), pages 417-420.
  6. Mara GRASSENI, 2004. "Technology, MNEs activity and Italian skill upgrading," Departmental Working Papers, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano 2004-25, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  7. Paolo Ghinetti, 2007. "Technology Innovations, Organisational Changes and Firms’ Wages in Italy," Working Papers, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont 111, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
  8. Aleksandra Parteka, 2012. "Skilled-Unskilled Wage Gap Versus Evolving Trade And Labour Market Structures in the EU," Working Papers, Instytut Rozwoju, Institute for Development 1204, Instytut Rozwoju, Institute for Development.
  9. Anna M. Falzoni & Alessandra Venturini & Claudia Villosio, 2007. "Skilled and Unskilled Wage Dynamics in Italy in the ‘90s: Changes in the individual characteristics, institutions, trade and technology," LABORatorio R. Revelli Working Papers Series, LABORatorio R. Revelli, Centre for Employment Studies 61, LABORatorio R. Revelli, Centre for Employment Studies.
  10. Anna M. Falzoni & Lucia Tajoli, 2008. "Offshoring and the skill composition of employment in the Italian manufacturing industries," KITeS Working Papers, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy 219, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2008.
  11. Dumont, Michel, 2006. "The reliability-or lack thereof-of data on skills," Economics Letters, Elsevier, Elsevier, vol. 93(3), pages 348-353, December.

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