Elisabetta Croci Angelini

Innovation and wage polarisation in Europe

In this article we improve on the literature dealing with the polarising effects of technological change on wages by proposing more rigorous definitions of wage dispersion within industries and of the different types and effects of innovation. We carry out an analysis across 10 manufacturing and service sectors in seven European countries (France, Italy, Germany, the Netherlands, Portugal, Spain and the UK), for two time periods. In addition to structural economic variables, we draw data from two waves of the Community Innovation Surveys (CIS 2, 1994–1996 and CIS3, 1998–2000) and from two waves of the European Community Household Panel (ECHP, 1994 and 2001) providing information on employment, wages, education and other individual’s characteristics, that we grouped in three skill groups: managers and professionals, white‐collar and blue‐collar workers. We set up econometric models to study the impact that different technological strategies, labour market patterns, education and training have on the levels of wage polarisation within industries. Higher wage polarisation is found in industries with strong product innovation and high shares of workers with university education. Wage compression is associated to the diffusion of new process technologies and to high shares of workers with secondary education. Finally, a fast employment dynamics favours wage disparities.

Wage Inequality in Europe: the Role of Labour Market and Redistributive Institutions

The chapter documents the rising trend in wage inequality in Europe and trace it back to a number of factors. Industrial relations have an influence on the degree of wage dispersion, thus being a determinant of macroeconomic performance. Social pacts do not necessarily have a negative influence on the employment level by reducing wage dispersion. In fact, in the case of Scandinavian countries social pacts have been compatible with an increase in wage dispersion. Overall, labour market deregulation and decentralised wage setting increase wage inequality, but the effect can to some extent be compensated by income redistribution policy. In any case, the increase in wage inequality in Europe is inconsistent with those theories (like Krugman’s) holding a negative causal relationship between wage compression and low-skilled employment.

Globalization and public administration: a complex relationship

The paper examines the relationship between globalization and public administration through economic theory principles and an example. Starting from the consideration of early concerns about globalization, it argues that although the size of government has rarely declined, its power has been eroded, making room on the one hand to the quest for global public goods, while on the other hand urging for more local public goods and decentralization. University education, mainly publicly supplied in Italy as well as in many European countries, exemplifies the awkwardness of introducing best practices in a context of asymmetric information with many idiosyncratic features.The article examines the relationship between globalization and public administration through economic theory principles and an example. Starting from the consideration of early concerns about globalization, it argues that although the size of government has rarely declined, its power has been eroded, making room on the one hand to the quest for global public goods, while on the other hand advocating for more local public goods and decentralization. University education, mainly publicly supplied in Italy as well as in many European countries, exemplifies the awkwardness of introducing best practices in a context of asymmetric information with many idiosyncratic features.

Real Divergence Across Europe and the Limits of EMU Macroeconomic Governance

As an effect of financial globalization,1 the traditional transmission mechanism of macroeconomic disturbances based on trade flows has been substituted by the much faster international financial transmission. The financial crisis, stemmed in 2007 from ‘moral hazard’ in the creation of derivatives by banking institutions in the United States, rapidly crossed the Atlantic. European banks loaded with the overpriced derivatives created through the securization of the US subprime mortgages started deleveraging in 2008–9, so that credit conditions tightened and the mutual creditworthiness among banks progressively faded out. The credit crunch and gloomy profit expectations led to a huge drop in output in the economies of the European Economic Monetary Union (here-after: EMU) The unprecedented amount of liquidity granted to financial institutions by the European Central Bank (hereafter: ECB) avoided the drying-up of the interbank financing, and the consequent implosion of the market functioning. To revive aggregate demand after substantially negative growth rates, some EMU governments also made recourse to expansionary fiscal interventions.

Prospettive strategiche per il Made in Italy agroalimentare: un’analisi esplorativa del mercato delle macchine professionali da caffè espresso secondo le 5 forze competitive di Porter

It is well known that the agri-food industry represents an important leverage for Italian exports. Espresso coffee is one of the drivers of this industry and is one of the key Made in Italy assets. Exporting espresso means spreading Italian culture. In fact, Espresso is widely associated with the Italian way of life, even though agricultural coffee production takes place very far from Italy. The connection between espresso and Italy is not provided only by the consumption culture, but also by the production of machinery for espresso preparation. Italian firms are an example of excellence in the production of traditional espresso machines. The development of the international horeca (hotel-restaurant-cafe) sector provides an opportunity for both the espresso producers and the connected industrial sectors, to improve their position in the international markets. This article presents an analysis of the coffee machine sector, with particular regard to its connections with the horeca sector. Porter’s framework of five forces is used to show the competitive environment in which the interested sectors operate. A snapshot of the relationships within the espresso coffee sector is taken using analysis of a variety of sources. The focus is on professional coffee machines and the possible development of this industry. Through a collection of secondary data, this article highlights the challenges faced by the espresso coffee machines manufacturers. On one hand it demonstrates that it is possible to spread Italian culture through coffee consumption. On the other hand, new global challenges are emerging, such as the growing coffee capsule market.