WAGE STRUCTURE, INEQUALITY AND SKILL-BIASED CHANGE: IS ITALY AN OUTLIER?

Paolo Naticchioni, Andrea Ricci and Emiliano Rustichelli ()

No 38/2007, Quaderni del Dipartimento di Economia, Finanza e Statistica from Università di Perugia, Dipartimento Economia

Abstract: This paper investigates the relation between wage structure, inequality and skill-biased change in Italy between 1993 and 2004. Using a quantile decomposition analysis, we point out that changes in wage structure are mainly driven by the negative coefficients component, which represents also one of driving force of the trends of wage inequality. This evidence suggests that the changes in wage structure in Italy can hardly be explained referring to a skill-biased change explanation. Evidence that is further reinforced by a set of descriptive statistics showing that the increasing educational attainments of the workforce might have been crowded out by a stable trend in the demand for skills.

Keywords: Educational wage premia; Human Capital; Skill Biased Change; Quantile regression; Wage Decomposition; Italy (search for similar items in EconPapers)
JEL-codes: I20 J24 J31 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2007-10-15
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Citations: View citations in EconPapers (7)

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