The labour market and the distribution of earnings: an empirical analysis for Italy

Fabio Clementi and Michele Giammatteo

International Review of Applied Economics, 2014, vol. 28, issue 2, 154-180

Abstract: Using four waves of data from the Participation Labour Unemployment Survey, a database of information on the Italian labour market supply, we address the question of earnings dispersion by applying a 'nested' decomposition procedure of the Theil inequality measure, which combines into a unified framework the standard decompositions by population subgroups and income sources. The empirical evidence obtained points to the key role played by the self-employees in shaping labour income inequality, especially at the upper extreme of the earnings distribution, and the emergence of non-standard forms of employment as an important feature of the contemporary workplace.

Date: 2014
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DOI: 10.1080/02692171.2013.838544

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