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Far away from a skill-biased change: falling educational wage premia in Italy

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  • Paolo Naticchioni
  • Andrea Ricci
  • Emiliano Rustichelli

Abstract

In this article we apply quantile regressions to investigate the evolution of Educational Wage Premia (EWP) in Italy from 1993 to 2004. Using the Survey of the Household Income and Wealth (SHIW, Bank of Italy) and different classifications for educational attainments, we show that, in the private sector, EWP have generally decreased over time, considering both continuous and categorical specifications for education, at all quantiles of the wage distribution. Different patterns are observed in the public sector, where EWP remain basically stable over time. A number of robustness checks and various econometric specifications are also applied in order to address sample selection issues. Our findings provide additional evidence in favour of the thesis that the increasing patterns in inequality and EWP, and the related interpretations concerning skill-biased changes, are much less pronounced in continental Europe than in Anglo-Saxon countries.

Suggested Citation

  • Paolo Naticchioni & Andrea Ricci & Emiliano Rustichelli, 2010. "Far away from a skill-biased change: falling educational wage premia in Italy," Applied Economics, Taylor & Francis Journals, vol. 42(26), pages 3383-3400.
  • Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3383-3400
    DOI: 10.1080/00036840802112455
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    References listed on IDEAS

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    1. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Rising Wage Inequality: The Role of Composition and Prices," NBER Working Papers 11628, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Andini, Corrado, 2017. "Tertiary Education for All and Wage Inequality: Policy Insights from Quantile Regression," IZA Policy Papers 132, Institute for the Study of Labor (IZA).
    2. Noe', Chiara, 2009. "Subject of degree and the gender wage gap: Evidence from Italy," MPRA Paper 47289, University Library of Munich, Germany.
    3. Paola Gritti & Riccardo Leoni, 2013. "The impact on wages of generic competencies, psychological capital, new work practices and digital technologies," Working Papers (2013-) 1301, University of Bergamo, Department of Management, Economics and Quantitative Methods.
    4. Giuseppe Croce & Edoardo Di Porto & Emanuela Ghignoni & Andrea Ricci, 2013. "Employer education, agglomeration and workplace training: poaching vs knowledge spillovers," Working Papers 162, University of Rome La Sapienza, Department of Public Economics.
    5. Cinthya G. Caamal Olvera, 2017. "Decreasing returns to schooling in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(1), pages 27-63.
    6. repec:spr:italej:v:3:y:2017:i:1:d:10.1007_s40797-016-0046-7 is not listed on IDEAS
    7. Leonardo Becchetti & Stefano Castriota & Ermanno Tortia, 2013. "Productivity, wages and intrinsic motivations," Small Business Economics, Springer, vol. 41(2), pages 379-399, August.
    8. Giovanni Abbiati & Carlo Barone, 2015. "Is university education worth the investment? The expectations of upper secondary school seniors and the role of family background," FBK-IRVAPP Working Papers 2015-13, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    9. Paolo Naticchioni & Andrea Ricci & Emiliano Rustichelli, 2008. "Wage Inequality, Employment Structure and Skill-biased Change in Italy," LABOUR, CEIS, vol. 22(s1), pages 27-51, June.
    10. Silvia Domeneghetti & Andrea Vaona, 2015. "Regional aspects of aggregate profitability dynamics in Italy," Working Papers 04/2015, University of Verona, Department of Economics.
    11. 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.
    12. Paolo Naticchioni & Andrea Ricci, 2009. "Decreasing Wage Inequality in Italy: The Role of Supply and Demand for Education," Working Papers - Dipartimento di Economia 9-DEISFOL, Dipartimento di Economia, Sapienza University of Rome, revised 2009.
    13. FORNERO Elsa & ROMITI Agnese & ROSSI Cristina, 2013. "Does Home Ownership Crowd Out Investment in Children's Human Capital?," LISER Working Paper Series 2013-21, LISER.
    14. 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.

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