Using a panel of administrative Italian data (source: INPS), this paper provides new empirical evidence on the earnings mobility in Italy over a relatively long time period (1985-1996). Transition matrices have been used to document the extent to which Italian employees change their position in the earnings ladder from one year to the next. Separate computations for the population as a whole and for various subgroups have helped to shed light on the underlying causes of the observed patterns.
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