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Wage expectations in northern and southern Italian regions: An interpretation based on psychological and social factors

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  • Maria De Paola
  • Claudio Lupi
  • Patrizia Ordine

Abstract

Individual wage expectations of Italian unemployed are studied. The analysis is carried out separately for the North-Central and southern Italian regions using semiparametric additive models. Results show a marked difference in expectations formation across regions. We argue that as far as the labour market information in the South is less diffuse and more ambiguous than in the North, the divergence between the econometric model based on a utility-maximisation mainstream theory and the actual wage expectation mechanism may be large. A tentative explanation based on psychological and social factors is offered.

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  • Maria De Paola & Claudio Lupi & Patrizia Ordine, 2005. "Wage expectations in northern and southern Italian regions: An interpretation based on psychological and social factors," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(3), pages 343-358.
    • Handle: RePEc:taf:irapec:v:19:y:2005:i:3:p:343-358
    DOI: 10.1080/02692170500119805
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    Cited by:

    1. Giorgio Brunello & Claudio Lupi & Patrizia Ordine, 2005. "Labor Taxes in Local Labor Markets: Evidence from Italian Regions," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(1), pages 29-54, September.
    2. Mauro Costantini & Claudio Lupi, 2006. "Divergence and long-run equilibria in Italian regional unemployment," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 899-904.
    3. Sam Jones & Ricardo Santos & Gimelgo Xirinda, 2020. "Misinformed, mismatched, or misled?: Explaining the gap between expected and realized graduate earnings in Mozambique," WIDER Working Paper Series wp-2020-47, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Wage expectations; regional disparities; generalised additive models; JEL Classification: D84; J30; J60;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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