This paper presents firm-level evidence on the change of the employment share and the wage premium of non-manual workers in Italian manufacturing during the nineties. We find that the relative stability of the aggregate wage premium and employment share hides offsetting disaggregate forces: technical progress raises the relative demand for skilled labor within firms, whereas demand changes associated with trade reduce the relative demand for skills. Moreover, it is within the class of non-manual workers that most of the action takes place: the wage premium and employment share of executives rise substantially, while those of clerks fall in a similar proportion. Finally, we find that the export status of firms plays a key role in explaining labor market dynamics: exporters account for most of both demand-related and technology-related shifts. Overall, our results for Italy question the conventional view that the labor market is ‘‘rigid’’ due to labor market institutions.

Manasse, P., Stanca, L., Turrini, A. (2004). Wage Premia and Skill Upgrading in Italy: Why the Hound did not Bark. LABOUR ECONOMICS, 11(1), 59-83 [10.1016/S0927-5371(03)00051-4].

Wage Premia and Skill Upgrading in Italy: Why the Hound did not Bark

STANCA, LUCA MATTEO;
2004

Abstract

This paper presents firm-level evidence on the change of the employment share and the wage premium of non-manual workers in Italian manufacturing during the nineties. We find that the relative stability of the aggregate wage premium and employment share hides offsetting disaggregate forces: technical progress raises the relative demand for skilled labor within firms, whereas demand changes associated with trade reduce the relative demand for skills. Moreover, it is within the class of non-manual workers that most of the action takes place: the wage premium and employment share of executives rise substantially, while those of clerks fall in a similar proportion. Finally, we find that the export status of firms plays a key role in explaining labor market dynamics: exporters account for most of both demand-related and technology-related shifts. Overall, our results for Italy question the conventional view that the labor market is ‘‘rigid’’ due to labor market institutions.
Articolo in rivista - Articolo scientifico
Trade; Technology; Labor market
English
59
83
http://ideas.repec.org/p/mib/wpaper/37.html
Manasse, P., Stanca, L., Turrini, A. (2004). Wage Premia and Skill Upgrading in Italy: Why the Hound did not Bark. LABOUR ECONOMICS, 11(1), 59-83 [10.1016/S0927-5371(03)00051-4].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/13078
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