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Are ‘good’ firms, good for all employees?

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  • Targa, Matteo

Abstract

This paper investigates whether employers share rents equally between white-collar and blue-collar workers. Using bias-corrected methods on administrative data from Italy’s Veneto region, I reject this null hypothesis. On average, white-collar workers receive premia that are 13%–15% higher than those of their blue-collar counterparts. This average disparity conceals substantial heterogeneity: half of the top 20% of firms for white-collar workers fall within the bottom 60% of the blue-collar distribution. High-type firms are, thus, not equally beneficial for all employees. Finally, the paper shows that firm premia differentiation has a long history: since the late 1980s, employers have steadily reduced the rents shared with blue-collar workers.

Suggested Citation

  • Targa, Matteo, 2025. "Are ‘good’ firms, good for all employees?," Labour Economics, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:labeco:v:97:y:2025:i:c:s092753712500140x
    DOI: 10.1016/j.labeco.2025.102816
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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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