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Wage Structure, Inequality And Skill-Biased Change: Is Italy An Outlier?

  • Paolo Naticchioni
  • Andrea Ricci
  • Emiliano Rustichelli

This paper investigates the relation between wage structure, inequality and skill-biased change in Italy between 1993 and 2004. Using a quantile decomposition analysis, we point out that changes in wage structure are mainly driven by the negative coefficients component, which represents also one of driving force of the trends of wage inequality. This evidence suggests that the changes in wage structure in Italy can hardly be explained referring to a skill-biased change explanation. Evidence that is further reinforced by a set of descriptive statistics showing that the increasing educational attainments of the workforce might have been crowded out by a stable trend in the demand for skills.

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Paper provided by Università di Perugia, Dipartimento Economia in its series Quaderni del Dipartimento di Economia, Finanza e Statistica with number 38/2007.

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Length: 23 pages
Date of creation: 15 Oct 2007
Date of revision:
Handle: RePEc:pia:wpaper:38/2007
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