Wage Mobility and Dynamics in Italy in the 1990s

Bruno Contini, Roberto Leombruni, Lia Pacelli and Claudia Villosio

in The Structure of Wages

Published by University of Chicago Press

Published in print February 2009 | ISBN: 9780226470504
Published online February 2013 | e-ISBN: 9780226470511 | DOI:
Wage Mobility and Dynamics in Italy in the 1990s

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This chapter, which describes the structure of wages within and between Italian firms in the 1990s, shows that firms do not follow a pay compression model in their wage policy. Firm wage policy matters in shaping the wage level distribution and also the wage change distribution. Low-wage firms almost always exhibit the highest positive net flows, which is consistent with what is observed in other countries. The link between firm size and within-firm individual seniority is positive, and exit rates decline as wages increase. In Italy, almost all large firms directly bargain over wages with unions, holding the nationwide industry contract as a benchmark. Negative wage growth is more common among movers and short-tenure workers. In addition, worker entry and exit rates are higher at low-pay firms and lower at high-pay firms.

Keywords: Italian firms; wage policy; Italy; wage growth; worker entry; worker exit

Chapter.  9309 words.  Illustrated.

Subjects: International Economics

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