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The effects of unions on wage inequality. The Italian case in the 1990's

Daniele Checchi and Laura Pagani ()

Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano

Abstract: In this paper we analyse the contribution of union activity to reducing earnings inequality. Given the specific nature of the system of industrial relations, Italian unions may contribute to inequality reduction through either national bargaining (i. e. reducing between-sector differentials) and/or local bargaining (i. e. reducing within-establishment inequality). After reviewing aggregate evidence on the first dimension, we explore the second route making use of matched employer-employees data-set, surveyed in 1995 by Eurostat. We pay great care to the potential endogeneity of local bargaining, and we find that the widespread adoption of local bargaining, by reducing the implicit price of individual characteristics, effectively contributes to inequality reduction.

Date: 2004-01-01
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Related works:
Journal Article: The effects of unions on wage inequality. The Italian case in the 1990s (2005) Downloads
Working Paper: The Effects of Unions on Wage Inequality: The Italian Case in the 1990s (2004) Downloads
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