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The labour market and the distribution of income: an empirical analysis for Italy

Author

Listed:
  • Fabio Clementi

    (University of Macerata)

  • Michele Giammatteo

    (Bank of Italy)

Abstract

This paper provides an empirical examination of the distribution of labour earnings in Italy. Using four waves of data from the Participation Labour Unemployment Survey, a database of information on the Italian labour market supply, we find the shape of the observed distributions to be positively skewed with a “fat” and long tail on the right. We also address the question of earnings dispersion by applying a “nested” decomposition procedure of the Theil inequality measure, which combines into a unified framework the standard decompositions by population subgroups and income sources. The empirical evidence obtained points to the key role played by the self-employees in shaping labour income inequality, especially at the upper extreme of the earnings distribution, and the emergence of non-standard forms of employment as an important feature of the contemporary workplace.

Suggested Citation

  • Fabio Clementi & Michele Giammatteo, 2012. "The labour market and the distribution of income: an empirical analysis for Italy," Working Papers 42-2012, Macerata University, Department of Studies on Economic Development (DiSSE), revised Jul 2014.
  • Handle: RePEc:mcr:wpaper:wpaper00042
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    References listed on IDEAS

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    Cited by:

    1. Esposito, Piero & Scicchitano, Sergio, 2020. "Educational mismatches, technological change and unemployment: evidence from secondary and tertiary educated workers," GLO Discussion Paper Series 465, Global Labor Organization (GLO).

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    More about this item

    Keywords

    inequality; size distribution; labour income;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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