The ’93 July Agreement in Italy: Bargaining Power, Efficiency Wages or Both?

Annalisa Cristini and Riccardo Leoni
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Riccardo Leoni: Università di Bergamo

Chapter 6 in Social Pacts, Employment and Growth. A Reappraisal of Ezio Tarantelli’s Thought, 2007, pp 97-119 from AIEL - Associazione Italiana Economisti del Lavoro

Abstract: The chapter investigates the effects of the wage determination mechanism based on bargaining and efficiency wages introduced in Italy in 1993. The analysis deals specifically with the productivity effects of the efficiency wage approach and tests the role of different profit sharing schemes based on formal performance evaluations bargained with the unions’ representatives. Traditional indicators, related to output-based variable pay (turnover, productivity, defects and cost targets) are shown to be inferior to new indicators, of input-based nature, which stimulate employees to improve their competences by learning, job rotation, team working, suggestion system and involvement. While the former refers to a traditional design setting, the latter is consistent with a Business Process Reengineering, which is a prerequisite for the so-called high road of innovation and development.

Keywords: Incomes policy in Italy; productivity; profit sharing schemes. (search for similar items in EconPapers)
JEL-codes: E31 E64 N14 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ail:chapts:02-06

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