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Wage structure in Italian Manufacturing firms

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  • Giulio Bottazzi
  • Marco Grazzi

Abstract

This paper jointly considers some pieces of evidence regarding peculiarities of industries' structure which are often separately addressed. Italian industrial sectors are known to be characterized by a high proportion of small enterprises that suffers from 'constraints to growth'. We look at the interplay of variables accounting for size, productivity and labor cost, and assess the relevance of labor force structure in determining the structure of cost for wage. We start by exploring the firm size-wage effect in Italian manufacturing sectors and investigate the extent to which such a trend is offset by a positive and counterbalancing relation linking together productivity and size. We investigate how size contributes to the wage differential within a firm on the earnings of distinct categories of employees. The empirical findings we present reveal that labor force structure matters in determining the wage cost structure of firms.

Suggested Citation

  • Giulio Bottazzi & Marco Grazzi, 2007. "Wage structure in Italian Manufacturing firms," LEM Papers Series 2007/05, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  • Handle: RePEc:ssa:lemwps:2007/05
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    File URL: http://www.lem.sssup.it/WPLem/files/2007-05.pdf
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    Cited by:

    1. Francesco Serti & Chiara Tomasi, 2008. "Firm Heterogeneity: do destinations of exports and origins of imports matter?," LEM Papers Series 2008/14, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Francesco Serti & Chiara Tomasi, 2008. "Self-Selection and Post-Entry Effects of Exports: Evidence from Italian Manufacturing Firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(4), pages 660-694, December.
    3. Tommaso Ciarli, 2012. "Structural Interactions and Long Run Growth. An Application of Experimental Design to Agent Based Models," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(5), pages 295-345.
    4. Tommaso Ciarli & André Lorentz & Maria Savona & Marco Valente, 2010. "The Effect Of Consumption And Production Structure On Growth And Distribution. A Micro To Macro Model," Metroeconomica, Wiley Blackwell, vol. 61(1), pages 180-218, February.
    5. Tommaso Ciarli & Andre' Lorentz & Maria Savona & Marco Valente, 2012. "The role of technology, organisation, and demand in growth and income distribution," LEM Papers Series 2012/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Francesco Serti & Chiara Tomasi, 2009. "Self-selection along different export and import markets," LEM Papers Series 2009/18, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. Francesco Serti & Chiara Tomasi & Antonello Zanfei, 2009. "The links between internationalization, skills and wages. The role of differences across firms and across partner countries," LEM Papers Series 2009/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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    Keywords

    Cost of labor; Productivity; Wage-size effect;

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