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Wage formation in the Italian private sector after the 1992-93 income policy agreements

  • Piero, Casadio

The effects of the 1992-93 Income Policy Agreements on wages and wage differentials are analysed. In the last decade, both the aggregate real wages and their differentials among individual remained constant. Thanks to the effectiveness of the new Government target inflation, the national contracts embodied a substantial wage moderation, driving the inflation expectations. At the opposite, the firm-level contracts coverage only slightly increased, insufficiently distributing the productivity growth. The cooperative framework favoured the diffusion of organisational change, temporary contracts and flexibility. The income policy was crucial to introduce the wage moderation, favouring the employment growth and helping the fiscal adjustment. Currently such positive results are at risk.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29396.

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Date of creation: Jan 2003
Date of revision:
Handle: RePEc:pra:mprapa:29396
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  1. Brunello, Giorgio & Lupi, Claudio & Ordine, Patrizia, 2001. "Widening differences in Italian regional unemployment," Labour Economics, Elsevier, vol. 8(1), pages 103-129, January.
  2. Roberto Torrini, 2002. "Cross-country differences in self-employment rates: the role of institutions," Temi di discussione (Economic working papers) 459, Bank of Italy, Economic Research and International Relations Area.
  3. Brunello, Giorgio & Lupi, Claudio & Ordine, Patrizia, 2000. "Regional Disparities and the Italian NAIRU," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 146-77, January.
  4. cipollone piero & Anita Guelfi, 2003. "tax credit policy and firms' behaviour: the case of subsidy to open-end labour contract in italy," Temi di discussione (Economic working papers) 471, Bank of Italy, Economic Research and International Relations Area.
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