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Decentralised bargaining and performance related pay: new evidence from a panel of Italian firms

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  • Mirella Damiani
  • Andrea Ricci
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    Abstract

    Purpose: This paper examines two institutional aspects closely related: (i) the extent to which collective bargaining has been decentralized at firm or district level; (ii) the extent to which, at this level of bargaining, Performance Related Pay (PRP) have been used. Design/methodology/approach: On the basis of a unique database, which contains recent information on nationwide sample of firms, panel estimates aimed at identifying the main factors which have favoured the adoption of the second level of bargaining and PRP are presented. Findings. unions, after size, is the main factor associated to the probability of the second level of bargaining and PRP. Significant estimates are also found for training. Research limitations/implications – Further research based on additional data should enable us to identify causal effects. Practical implications: It offers new evidence to evaluate ongoing reform proposals to implement firm-level agreements more tailored to firms’ specific needs. Originality/value our estimates are based on a unique dataset which contains recent information and a nationwide sample of firms, representative of the whole Italian economy (other studies on Italy are more limited in scope, since they focus on specific sectors or regions). Second, it addresses the question of training, an aspect so far not examined in relation to PRP in Italy.

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    Bibliographic Info

    Paper provided by Università di Perugia, Dipartimento Economia, Finanza e Statistica in its series Quaderni del Dipartimento di Economia, Finanza e Statistica with number 97/2011.

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    Length: 26 pages
    Date of creation: 01 Nov 2011
    Date of revision:
    Handle: RePEc:pia:wpaper:97/2011

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    Keywords: Performance–related pay; unions;

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    References

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    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.:
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    1. Mirella Damiani & Fabrizio Pompei & Andrea Ricci, 2011. "Temporary job protection and productivity growth in EU economies," Quaderni del Dipartimento di Economia, Finanza e Statistica 87/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
    2. Addison, John T. & Bryson, Alex & Teixeira, Paulino & Pahnke, André & Bellmann, Lutz, 2009. "The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain," IZA Discussion Papers 4502, Institute for the Study of Labor (IZA).
    3. Anne C. Gielen, 2011. "Profit Sharing for Increased Training Investments," British Journal of Industrial Relations, London School of Economics, vol. 49(4), pages 643-665, December.
    4. Fathi Fakhfakh & Felix FitzRoy, 2002. "Basic Wages and Firm Characteristics: Rent-sharing in Frensh Manufacturing," CRIEFF Discussion Papers 0203, Centre for Research into Industry, Enterprise, Finance and the Firm.
    5. Patrizio Pagano & Fabiano Schivardi, 2003. "Firm Size Distribution and Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(2), pages 255-274, 06.
    6. Andrew M. Robinson & Nicholas Wilson, 2006. "Employee Financial Participation and Productivity: An Empirical Reappraisal," British Journal of Industrial Relations, London School of Economics, vol. 44(1), pages 31-50, 03.
    7. Etienne Wasmer, 2006. "General versus Specific Skills in Labor Markets with Search Frictions and Firing Costs," American Economic Review, American Economic Association, vol. 96(3), pages 811-831, June.
    8. repec:ese:iserwp:96-13 is not listed on IDEAS
    9. Robert Inklaar & Marcel P. Timmer & Bart van Ark, 2008. "Market services productivity across Europe and the US," Economic Policy, CEPR & CES & MSH, vol. 23, pages 139-194, 01.
    10. Piero, Casadio, 2010. "Contrattazione aziendale integrativa e differenziali salariali territoriali: informazioni dall'indagine sulle imprese della Banca d'Italia," MPRA Paper 29384, University Library of Munich, Germany.
    11. Andrea Brandolini & Matteo Bugamelli & Guglielmo Barone & Antonio Bassanetti & Magda Bianco & Emanuele Breda & Emanuela Ciapanna & Federico Cingano & Francesco D’Amuri & Leandro D’Aurizi, 2009. "Report on trends in the Italian productive system," Questioni di Economia e Finanza (Occasional Papers) 45, Bank of Italy, Economic Research and International Relations Area.
    12. Jonathan Michie & Maura Sheehan, 2003. "Labour market deregulation, 'flexibility' and innovation," Cambridge Journal of Economics, Oxford University Press, vol. 27(1), pages 123-143, January.
    13. Keld Laursen & Nicolai J. Foss, 2003. "New human resource management practices, complementarities and the impact on innovation performance," Cambridge Journal of Economics, Oxford University Press, vol. 27(2), pages 243-263, March.
    14. Michie, Jonathan & Sheehan, Maura, 1999. "HRM Practices, R&D Expenditure and Innovative Investment: Evidence from the UK's 1990 Workplace Industrial Relations Survey (WIRS)," Industrial and Corporate Change, Oxford University Press, vol. 8(2), pages 211-34, June.
    15. Addison, John T & Hirsch, Barry T, 1989. "Union Effects on Productivity, Profits, and Growth: Has the Long Run Arrived?," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 72-105, January.
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