Decreasing Wage Inequality in Italy: The Role of Supply and Demand for Education

Paolo Naticchioni and Andrea Ricci
Additional contact information
Andrea Ricci: ISFOL

No 1004, Working Papers CELEG from Dipartimento di Economia e Finanza, LUISS Guido Carli

Abstract: In this paper we show that wage inequality decreased in the Italian private sector, both in the upper and in the lower tail of the distribution, in the period 1993-2006. By applying a quantile decomposition procedure we find that the decrease of the 90/50 ratio is almost totally related to a negative coefficients component. As for the reduction of the 50/10 ratio, the quantile decomposition shows that it can be related to both the negative coefficients component and the residual component. We claim that that supply and demand for education have to be considered as the main explanation for the falling educational wage premia that represent the driving force of the falling 90/50 ratio. The reduction of the 50/10 ratio can be instead associated to the changes in the residual component -related to compositional effects-, to the changes in the occupation distribution and to changes in tax regimes.

Keywords: Inequality; Educational Wage Premia; Quantile Decomposition; supply-demand of education; Italy. (search for similar items in EconPapers)
JEL-codes: J24 J3 O3 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://static.luiss.it/RePEc/pdf/celegw/1004.pdf (application/pdf)

Related works:
Working Paper: Decreasing Wage Inequality in Italy: The Role of Supply and Demand for Education (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lui:celegw:1004

Access Statistics for this paper

More papers in Working Papers CELEG from Dipartimento di Economia e Finanza, LUISS Guido Carli Contact information at EDIRC.
Bibliographic data for series maintained by Paolo Giordani ( this e-mail address is bad, please contact ).