Carlo Dell'Aringa

Collective bargaining and relative earnings in Italy

Abstract The most commonly studied aspect of unionism is the relative wage effects that the presence of unions generates. Numerous studies, predominantly for US and UK labour markets, have attempted to measure the extent of the union–nonunion wage gap. Yet, despite the importance of unions in wage determination, no such evidence exists for Italy. Two main reasons can be put forward to explain the lack of studies: firstly, to date, no information on union status was available in any of the existing earnings surveys; secondly, the union-nonunion distinction has a different meaning in the Italian industrial relations system. The purpose of this study is to investigate the impact of unions on relative wages using establishment-level data for the metal-mechanical industry. A positive (statistically statistically) wage differential is found in establishments where unions are recognised for local collective bargaining. The wage gap is shown to be bigger for white-collar workers. After rejecting the hypothesis of a constant wage differential, various differentials according to establishment characteristics are calculated. Union-threat effects show a positive effect on pay in the sector not covered by local bargaining.

Public Sector Pay and Regional Competitiveness: A First Look at Regional Public-Private Wage Differentials in Italy

In this paper we investigate regional public–private wage differentials in Italy. Following the recent wave of reforms that significantly changed wage setting and employment relations in both sectors—increasing decentralization in collective bargaining and enforcing a ‘privatization’ of public sector employment contracts—we present new estimates of the public–private wage gap by geographical location. We report both ‘standardized’ public–private wage differentials and estimates obtained using geographically weighted regression methods. We show that significant differences exist in public–private wage differentials across Italian regions, and that the latter can be partly explained by local labour market conditions affecting the private sector and only marginally the public sector. Differences in public–private wage differentials across regions are expected to determine several imbalances in terms of ‘wait’ unemployment and recruitment problems in the different areas.

Labour Market Assimilation and Over-Education: The Case of Immigrant Workers in Italy

In this paper we study the assimilation of immigrants into the Italian labour market using over-education as an indicator of labour market performance. The main objective is to assess the extent to which work experience in the host country’s labour market favours the international transferability of immigrants’ human capital. Using data from the Istat Labour Force Survey for the years 2005-2007, we find that foreigners are much more likely to be over-educated than natives upon their arrival in Italy and that work experience gained in the country of origin is not valued in the Italian labour market. Moreover, we find that not even experience acquired in Italy is helpful in improving immigrants’ educational job matches, suggesting that catch-up by foreigners seems unachievable, even after they adapt their skills to the host country labour market.

Regional Wage Differentials and Collective Bargaining in Italy

This paper uses ESES (European Structure of Earnings Survey) data for 1995 in order to investigate the impact of the Italian bargaining system on regional wage differentials and on local wage dispersion. The ESES survey is a large matched employer-employee data-set containing a wealth of information regarding characteristics of both workers and firms. The main findings suggest that in the south of Italy, in specific conditions, the minimum wages established by national sectoral collective agreements oblige some firms to pay higher wages than they would have done had there been no national agreement. In addition, wage dispersion in the south is more compressed for workers covered than for workers not covered by a national collective agreement. These results can be interpreted as indirect evidence for the fact that national collective bargaining creates regional «wage floors».

Policies for the Unemployed and Social Shock Absorbers: The Italian Experience

Abstract This article analyses Italian policies for the unemployed, paying special attention to income support measures. After presenting the range of policies in this area, the analysis focuses on the effects of such policies on the labour market and presents the reform proposals currently under debate in Italy in the context of international experience and discussion.