IDEAS home Printed from https://ideas.repec.org/a/mul/je8794/doi10.1429-32534y2010i2p241-292.html
   My bibliography  Save this article

Firm level wage bargaining and territorial wage differentials: evidence from the Bank of Italy survey on firms

Author

Listed:
  • Piero Casadio

Abstract

Collective bargaining at company level has not been particularly widespread, especially at small firms and in the South. The Bank of Italy's survey shows that performance-related wage premia have been paid irregularly and have involved only small amounts. Nevertheless they have fostered a gradual widening of regional and skill-based wage differentials. In 2002-07 the earnings items set at company level, in addition to the contractual minimums, averaged 14.9 per cent in industrial firms; 6.7 per cent only for firms below 50 workers. Controlling for firm size and characteristics, the company-level component of earnings was some 5-6 percentage points lower in the South than in the North for production workers and 8-9 points for clerical workers. The original finding of the study is that just 10 per cent of employees in the North earn only the nationally fixed contractual minimum, compared with 30 per cent in the Centre and over 40 per cent in the South. A short examination of geographical wage differentials, controlling for sector, and firm size concludes.

Suggested Citation

  • Piero Casadio, 2010. "Firm level wage bargaining and territorial wage differentials: evidence from the Bank of Italy survey on firms," Politica economica, Società editrice il Mulino, issue 2, pages 241-292.
  • Handle: RePEc:mul:je8794:doi:10.1429/32534:y:2010:i:2:p:241-292
    as

    Download full text from publisher

    File URL: https://www.rivisteweb.it/download/article/10.1429/32534
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.rivisteweb.it/doi/10.1429/32534
    Download Restriction: no

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Origo, Federica, 2009. "Flexible pay, firm performance and the role of unions. New evidence from Italy," Labour Economics, Elsevier, vol. 16(1), pages 64-78, January.
    2. Paolo Pini, 2005. "Dinamiche innovative, partecipazione e risultati d'impresa in un sistema locale di produzione," Economia politica, Società editrice il Mulino, issue 1, pages 3-24.
    3. Piero CASADIO & Maria LAMELAS & Giorgio RODANO, 2005. "Cambiamento istituzionale, salari e flessibilità: l’esperienza della concertazione in Italia," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 113(2), pages 185-214.
    4. Daniele Checchi & Laura Pagani, 2005. "The effects of unions on wage inequality. The Italian case in the 1990s," Politica economica, Società editrice il Mulino, issue 1, pages 43-70.
    5. Sergio DESTEFANIS & Giuseppe MASTROMATTEO & Giovanni VERGA, 2005. "Wages and Monetary Policy in Italy Before and After the Wage Agreements," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 113(2), pages 289-318.
    6. Piero, Casadio, 2003. "Wage formation in the Italian private sector after the 1992-93 income policy agreements," MPRA Paper 29396, University Library of Munich, Germany.
    7. Andrea Brandolini & Piero Casadio & Piero Cipollone & Marco Magnani & Alfonso Rosolia, 2007. "Employment Growth in Italy in the 1990s: Institutional Arrangements and Market Forces," AIEL Series in Labour Economics,in: Nicola Acocella & Riccardo Leoni (ed.), Social Pacts, Employment and Growth. A Reappraisal of Ezio Tarantelli’s Thought, edition 1, chapter 4, pages 31-68 AIEL - Associazione Italiana Economisti del Lavoro.
    8. Arellano, Manuel & Honore, Bo, 2001. "Panel data models: some recent developments," Handbook of Econometrics,in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 53, pages 3229-3296 Elsevier.
    9. Carlo Dell'Aringa & Laura Pagani, 2007. "Collective Bargaining and Wage Dispersion in Europe," British Journal of Industrial Relations, London School of Economics, vol. 45(1), pages 29-54, March.
    10. William Greene, 2004. "The behaviour of the maximum likelihood estimator of limited dependent variable models in the presence of fixed effects," Econometrics Journal, Royal Economic Society, vol. 7(1), pages 98-119, June.
    11. Annalisa Cristini & Alessandro Gaj & Sandrine Labory & Riccardo Leoni, 2003. "Flat Hierarchical Structure, Bundles of New Work Practices and Firm Performance," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 313-313.
    12. Annalisa Cristini & Riccardo Leoni, 2007. "The ’93 July Agreement in Italy: Bargaining Power, Efficiency Wages or Both?," AIEL Series in Labour Economics,in: Nicola Acocella & Riccardo Leoni (ed.), Social Pacts, Employment and Growth. A Reappraisal of Ezio Tarantelli’s Thought, edition 1, chapter 6, pages 97-119 AIEL - Associazione Italiana Economisti del Lavoro.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:je8794:doi:10.1429/32534:y:2010:i:2:p:241-292. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: https://www.rivisteweb.it/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.