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More insecure and less paid? The effect of perceived job insecurity on wage distribution

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  • Scicchitano, Sergio
  • Biagetti, Marco
  • Chirumbolo, Antonio

Abstract

This article employs a Counterfactual Decomposition Analysis (CDA) using both a semi-parametric and a non-parametric method to examine the pay gap, over the entire wage distribution, between secure and insecure workers on the basis of perceived job insecurity. Using the 2015 INAPP Survey on Quality of Work, our results exhibit a mirror J-shaped pattern in the pay gap, with a significant sticky floor effect, i.e. the job insecurity more relevant at the lowest quantiles. This pattern is mainly due to the characteristics effect, while the relative incidence of the coefficient component accounts roughly for 22 up to 36% of the total difference, being more relevant at the bottom of the wage distribution.

Suggested Citation

  • Scicchitano, Sergio & Biagetti, Marco & Chirumbolo, Antonio, 2018. "More insecure and less paid? The effect of perceived job insecurity on wage distribution," GLO Discussion Paper Series 293, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:293
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    Cited by:

    1. Caselli, Mauro & Fracasso, Andrea & Marcolin, Arianna & Scicchitano, Sergio, 2021. "The reassuring effect of firms' technological innovations on workers' job insecurity," GLO Discussion Paper Series 938, Global Labor Organization (GLO).
    2. Vannutelli, Silvia & Scicchitano, Sergio & Biagetti, Marco, 2021. "Routine biased technological change and wage inequality: do workers' perceptions matter?," GLO Discussion Paper Series 763, Global Labor Organization (GLO).
    3. Juan A. & Francisco Lagos & Ana I. Moro-Egido, 2022. "Job Insecurity during the COVID-19 Pandemic in Spain," ThE Papers 22/10, Department of Economic Theory and Economic History of the University of Granada..
    4. Luca Bonacini & Giovanni Gallo & Sergio Scicchitano, 2021. "Working from home and income inequality: risks of a ‘new normal’ with COVID-19," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 303-360, January.

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    More about this item

    Keywords

    Job (in)security; Counterfactual distribution; Semi-parametric methodology; Nonparametric methodology; Wage gap; Blinder/Oaxaca; Quantile regression; Italy;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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