Wage Differentials and International Trade in Italy Using Individual Micro Data 1991-1996
In this paper we use individual micro data on workers combined with industry and regional data to study the dynamics of the wage differentials between skilled and unskilled workers in Italy in the period 1991-1996. Being different to previous empirical studies, our data allow us to explore in a unique framework the role of many of the factors indicated in the literature as possible causes of the widening of the wage gap between skilled and unskilled workers: changes in the individual characteristics of workers, changes in the institutions of the labour market, increasing international integration and skill-biased technological progress. Our results show that international integration, both in terms of trade in goods and in terms of international labour mobility, plays a role in determining the wage differential between skilled (white collar) and unskilled (blue collar) workers, but the impact is in opposite directions. While, on the one hand, increasing trade in goods reduces wage differentials (through a positive impact on the wages of the unskilled workers), on the other hand immigration increases wage differentials, affecting the wage of the unskilled. In addition, in line with the research in labour economics, our findings show that the individual characteristics of workers matter in explaining wage differentials: the growth of women participation in the labour market reduces the wage gap, while the ageing of the employees increases it.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 0039 035 2052111
Web page: http://www.unibg.it/struttura/en_struttura.asp?cerca=en_dse_introEmail:
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maria Luigia Segnana, 1998.
"Trade and labour markets: vertical and regional differentiationin Italy,"
Department of Economics Working Papers
9810, Department of Economics, University of Trento, Italia.
- Giuseppe Celi & Maria Luigia Segnana, 2000. "Trade and Labour Markets: Vertical and Regional Differentiation in Italy," LABOUR, CEIS, vol. 14(3), pages 441-472, 09.
- Eli Berman & John Bound & Zvi Griliches, 1993. "Changes in the Demand for Skilled Labor within U.S. Manufacturing Industries: Evidence from the Annual Survey of Manufacturing," NBER Working Papers 4255, National Bureau of Economic Research, Inc.
- Lucio Baccaro, 2000. "Centralized collective bargaining and the problem of "compliance": Lessons from the Italian experience," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(4), pages 579-601, July.
- Cappellari, Lorenzo, 2004.
"Earnings Mobility Among Italian Low Paid Workers,"
IZA Discussion Papers
1068, Institute for the Study of Labor (IZA).
- Mitko Dimitrov & Wladimir Andreff & Laszlo Csaba (ed.), 1999. "Economies in Transition and the Variety of Capitalisms. Features, Changes, Convergence," ERI-BAS Books, Bulgarian Academy of Sciences - Economic Research Institute, number 1:p:1-527, June.
- Machin, S. & Van Reenen, J., 1997.
"Technology and Changes in Skill Structure: Evidence from Seven OECD Countries,"
24, Centre for Economic Performance & Institute of Economics.
- Stephen Machin & John Van Reenen, 1998. "Technology And Changes In Skill Structure: Evidence From Seven Oecd Countries," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1215-1244, November.
- Stephen Machin & John Van Reenen, 1998. "Technology and changes in skill structure: evidence from seven OECD countries," IFS Working Papers W98/04, Institute for Fiscal Studies.
- Cipollone Piero, 2001. "La convergenza dei salari dell'industria manifatturiera in Europa," Politica economica, Società editrice il Mulino, issue 1, pages 97.
- Rodolfo Helg & Lucia Tajoli, 2002.
"Patterns of International Fragmentation of Production and Implications for the Labor Markets,"
503, Research Seminar in International Economics, University of Michigan.
- Rodolfo Helg & Lucia Tajoli, 2004. "Patterns of International Fragmentation of Production and Implications for the Labor Markets," International Trade 0405002, EconWPA.
- Rodolfo Helg & Riccardo Faini & Anna M. Falzoni & Marzio Galeotti & Alessandro Turrini, 2001.
"Importing Jobs And Exporting Firms? On The Wage And Employment Implications Of Italy’S Trade And Foreign Direct Investment Flows,"
- Riccardo Faini & Anna M. Falzoni & Marzio Galeotti & Rodolfo Helg & Alessandro Turrini, 2001. "Importing Jobs And Exporting Firms? On The Wage And Employment Implications Of Italy’S Trade And Foreign Direct Investment Flows," International Trade 0103002, EconWPA.
- Paolo Manasse & Luca Stanca & Alessandro Turrini, .
"Wage Premia and Skill Upgrading in Italy: Why didn’t the Hound Bark?,"
204, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Manasse, Paolo & Stanca, Luca & Turrini, Alessandro, 2004. "Wage premia and skill upgrading in Italy: why didn't the hound bark?," Labour Economics, Elsevier, vol. 11(1), pages 59-83, February.
- Paolo Manasse & Luca Stanca & Alessandro Turrini, 2002. "Wage Premia and Skill Upgrading in Italy: Why Didn´t the Hound Bark?," Development Working Papers 162, Centro Studi Luca d\'Agliano, University of Milano.
- Manasse, Paolo & Stanca, Luca & Turrini, Alessandro Antonio, 2002. "Wage Premia and Skill Upgrading in Italy: Why Didn't the Hound Bark?," CEPR Discussion Papers 3202, C.E.P.R. Discussion Papers.
- Paolo Manasse & Luca Stanca & Alessandro Turrini, 2001. "Wage Premia and Skill Upgrading in Italy: Why didn’t the Hound Bark?," Working Papers 37, University of Milano-Bicocca, Department of Economics, revised Nov 2001.
- P. Manasse & L. Stanca & A. Turrini, 2001. "Wage Premia and Skill Upgrading in Italy: Why didn't the Hound Bark?," Working Papers 423, Dipartimento Scienze Economiche, Universita' di Bologna.
- Agar Brugiavini, 1998. "An Empirical Analysis of Interfirm Mobility in Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 57(1), pages 1-34, April.
- Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
- Paolo Manasse & Luca Stanca, 2002. "Working on the Train: Technology, Trade and Wages in Italian Manufacturing," Working Papers 61, University of Milano-Bicocca, Department of Economics, revised Nov 2002.
- Christopher Erickson & Andrea Ichino, 1995.
"Wage Differentials in Italy: Market Forces, Institutions, and Inflation,"
in: Differences and Changes in Wage Structures, pages 265-306
National Bureau of Economic Research, Inc.
- Christopher L. Erikson & Andrea Ichino, 1994. "Wage Differentials in Italy: Market Forces, Institutions, and Inflation," NBER Working Papers 4922, National Bureau of Economic Research, Inc.
- repec:ese:iserwp:2000-41 is not listed on IDEAS
- Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1, November.
- Bruno Contini & Michelangelo Filippi & Claudio Malpede, 2000. "Safari nella giungla dei salari. Nel Mezzogiorno si lavora di meno?," LABORatorio R. Revelli Working Papers Series 3, LABORatorio R. Revelli, Centre for Employment Studies.
- Neuman, Shoshana & Oaxaca, Ronald L, 1998. "Estimating Labour Market Discrimination with Selectivity Corrected Wage Equations: Methodological Considerations and an Illustration from Israel," CEPR Discussion Papers 1915, C.E.P.R. Discussion Papers.
- Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc.
- Claudio Lucifora, 1999. "Wage Inequalities and Low Pay: The Role of Labour Market Institutions," Working Papers 1999.13, Fondazione Eni Enrico Mattei.
- Jonathan E. Haskel, 1999.
"The Trade and Labour Approaches to Wage Inequality,"
405, Queen Mary University of London, School of Economics and Finance.
- Haskel, Jonathan, 2000. "The Trade and Labour Approaches to Wage Inequality," CEPR Discussion Papers 2476, C.E.P.R. Discussion Papers.
- Machin, Stephen, 1996. "Wage Inequality in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 47-64, Spring.
- Corneo Giacomo & Lucifora Claudio, 1993.
"Wage formation under union threat effects : theory and empirical evidence,"
CEPREMAP Working Papers (Couverture Orange)
- Corneo, Giacomo & Lucifora, Claudio, 1997. "Wage formation under union threat effects: Theory and empirical evidence," Labour Economics, Elsevier, vol. 4(3), pages 265-292, September.
- Lorenzo Cappellari, 2002.
"The dynamics and inequality of Italian male earnings: permanent changes or transitory fluctuations?,"
10th International Conference on Panel Data, Berlin, July 5-6, 2002
C2-2, International Conferences on Panel Data.
When requesting a correction, please mention this item's handle: RePEc:brg:wpaper:0502. 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: (University of Bergamo Library)
If references are entirely missing, you can add them using this form.