Labor Market Reform and Rent-sharing: A Quasi-experiment Experience

Ambra Poggi and Rosella Nicolini

Applied Economic Perspectives and Policy, 2016, vol. 38, issue 4, 618-631

Abstract: We analyze the impact on wages of the adoption of a rent-sharing remuneration scheme aimed at making labor institutions more flexible. We work within a quasi-experimental setting referring to a sample of Italian companies before and after the introduction of the Treu Reform (1997). Our estimations confirm that this reform not only increased insider workers' wages via rent-sharing, but also fueled a σ−convergence process of the rent-sharing elasticity across the sectors at a different rate. Finally, we deliver a reasoned discussion of the consequences of implementing this reform on the Italian job market. This reform produced advances in the quality of job remuneration but it deepened a structural gap in the Italian labor market composition.

Keywords: Rent-sharing; convergence; IV estimation (search for similar items in EconPapers)
JEL-codes: C36 J30 J50 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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