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Peer interactions, local markets, and wages: Evidence from Italy

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Listed:
  • Brunetti, Irene
  • Intraligi, Valerio
  • Ricci, Andrea
  • Vittori, Claudia

Abstract

This paper investigates the relationship between the spatial distribution of occupations with a high content of peer interactions and wages among Italian provinces. At this aim, we use a unique employer-employee dataset obtained by merging administrative data on wages and labor market histories of individuals, with survey data on job tasks and contents. The spatial distribution of jobs intensive in peer-interactions is further measured according to the occupational structure of Italian provinces. The econometric analysis shows that the concentration of peer interactions leads to higher wages at the province level. These results are robust to firms and workers' heterogeneity and endogeneity issues.

Suggested Citation

  • Brunetti, Irene & Intraligi, Valerio & Ricci, Andrea & Vittori, Claudia, 2023. "Peer interactions, local markets, and wages: Evidence from Italy," GLO Discussion Paper Series 1235, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1235
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    References listed on IDEAS

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    More about this item

    Keywords

    Peer interactions; Wages; Agglomeration externalities;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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