Wage Inequality, Employment Structure and Skill‐biased Change in Italy

Paolo Naticchioni, Andrea Ricci and Emiliano Rustichelli ()

LABOUR, 2008, vol. 22, issue s1, 27-51

Abstract: Abstract. This paper investigates empirically the relation between wage inequality, employment structure, and skill‐biased change in Italy between 1993 and 2004. Applying quantile decomposition analysis, we point out that changes in wage inequality are mainly driven by a decrease in educational premia over time, whereas changes in employment structure play a negligible role. This evidence suggests that changes in wage inequality in Italy can hardly be interpreted in terms of a skill‐biased change, and the evidence is further reinforced by a set of descriptive statistics showing that the increasing educational attainments of the workforce might have been crowded out by a stable trend in the demand for skills.

Date: 2008
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