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Falling Educational Wage Premia in Italy


  • Paolo Naticchioni
  • Andrea Ricci


In this paper we analyze the evolution of Educational wage premia (Ewp) in the Italian private sector. Drawing upon the Household income and wealth survey (Bank of Italy) we show that Ewp showed a general decrease between 1993 and 2004, at all quantiles of the wage distribution. Our findings do not depend on the type of educational attainments. A number of robustness checks and various econometric specifications are also applied in order to address matters of sample selection. Thus Italy is situated as an outlier among the Oecd countries, where the Ewp have generally increased over the last few decades.

Suggested Citation

  • Paolo Naticchioni & Andrea Ricci, 2009. "Falling Educational Wage Premia in Italy," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
  • Handle: RePEc:rar:journl:0121

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    References listed on IDEAS

    1. Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, vol. 11(3), pages 355-371, June.
    2. Omar Arias & Walter Sosa-Escudero & Kevin F. Hallock, 2001. "Individual heterogeneity in the returns to schooling: instrumental variables quantile regression using twins data," Empirical Economics, Springer, vol. 26(1), pages 7-40.
    3. Guido de Blasio & Sabrina Di Addario, 2005. "Do Workers Benefit from Industrial Agglomeration?," Journal of Regional Science, Wiley Blackwell, vol. 45(4), pages 797-827.
    4. Lucifora, Claudio & Comi, Simona & Brunello, Giorgio, 2000. "The Returns to Education in Italy: A New Look at the Evidence," IZA Discussion Papers 130, Institute for the Study of Labor (IZA).
    5. Brunello, Giorgio & Miniaci, Raffaele, 1999. "The economic returns to schooling for Italian men. An evaluation based on instrumental variables1," Labour Economics, Elsevier, vol. 6(4), pages 509-519, November.
    6. Peracchi, Franco, 2006. "Educational Wage Premia and the Distribution of Earnings: An International Perspective," Handbook of the Economics of Education, Elsevier.
    7. Pamela Giustinelli, 2004. "Quantile Regression Evidence on Italian Education Returns," Rivista di Politica Economica, SIPI Spa, vol. 94(6), pages 49-100, November-.
    8. Koenker, Roger & Bassett, Gilbert, Jr, 1982. "Robust Tests for Heteroscedasticity Based on Regression Quantiles," Econometrica, Econometric Society, vol. 50(1), pages 43-61, January.
    9. Lilla Marco, 2005. "Disuguaglianze salariali in Italia: nuove evidenze dai microdati SHIW," Politica economica, Società editrice il Mulino, issue 1, pages 71-102.
    10. repec:rtv:ceiswp:215 is not listed on IDEAS
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    Cited by:

    1. Paolo Naticchioni & Michele Raitano & Claudia Vittori, 2016. "La Meglio Gioventù: earnings gaps across generations and skills in Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 233-264, August.
    2. Annamaria Simonazzi & Paolo Villa & Federico Lucidi, 2008. "Continuity and Change in the Italian Model: Italy's Laborious Convergence towards the European Social Model," Working Papers 108, University of Rome La Sapienza, Department of Public Economics.

    More about this item


    Educational wage premia; Quantile regression; Italy;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials


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