Wage Premia and Skill Upgrading in Italy: Why Didn't the Hound Bark?

Paolo Manasse, Luca Stanca and Alessandro Turrini

No 162, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: This paper presents firm level evidence on the dynamics of nonmanual wage premia and employment shares in Italian manufacturing during the nineties. We find that the relative stability of aggregate wage premia and employment shares hides offsetting disaggregate forces. First, while technical progress raises the relative demand for skilled labor within firms, demand changes associated with exports reduce the relative demand for skills. Second, within the class of nonmanual workers, wage premia and employment shares of executives rise substantially, whereas those of clerks fall in a similar proportion. We also find that the export status of firms plays a key role in explaining labour market dynamics, as exporters account for most of both demand-related and technology-related shifts. Overall, our results for Italy question the general validity of the conventional view that emphasizes the role of labor market institutions, as opposed to trade and technology, in determining wage and employment dynamics in continental Europe.

Keywords: wage differentials; technological change; international trade (search for similar items in EconPapers)
JEL-codes: F12 F16 J31 (search for similar items in EconPapers)
Date: 2002-05-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Wage premia and skill upgrading in Italy: why didn't the hound bark? (2004)
Working Paper: Wage Premia and Skill Upgrading in Italy: Why Didn't the Hound Bark? (2002)
Working Paper: Wage Premia and Skill Upgrading in Italy: Why didn't the Hound Bark? (2001)
Working Paper: Wage Premia and Skill Upgrading in Italy: Why didn’t the Hound Bark? (2001)
Working Paper: Wage Premia and Skill Upgrading in Italy: Why didn’t the Hound Bark?
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