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

Fabio Clementi and Michele Giammatteo
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Michele Giammatteo: Bank of Italy

No 42-2012, Working Papers from Macerata University, Department of Studies on Economic Development (DiSSE)

Abstract: This paper provides an empirical examination of the distribution of labour earnings in Italy. Using four waves of data from the Participation Labour Unemployment Survey, a database of information on the Italian labour market supply, we find the shape of the observed distributions to be positively skewed with a “fat” and long tail on the right. We also 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.

Keywords: inequality; size distribution; labour income (search for similar items in EconPapers)
JEL-codes: D33 D63 (search for similar items in EconPapers)
Date: 2012-06, Revised 2014-07
New Economics Papers: this item is included in nep-iue and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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