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More insecure and less paid? The effect of perceived job insecurity on wage distribution

Sergio Scicchitano (), Marco Biagetti and Antonio Chirumbolo

No 293, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: This article employs a Counterfactual Decomposition Analysis (CDA) using both a semi-parametric and a non-parametric method to examine the pay gap, over the entire wage distribution, between secure and insecure workers on the basis of perceived job insecurity. Using the 2015 INAPP Survey on Quality of Work, our results exhibit a mirror J-shaped pattern in the pay gap, with a significant sticky floor effect, i.e. the job insecurity more relevant at the lowest quantiles. This pattern is mainly due to the characteristics effect, while the relative incidence of the coefficient component accounts roughly for 22 up to 36% of the total difference, being more relevant at the bottom of the wage distribution.

Keywords: Job (in)security; Counterfactual distribution; Semi-parametric methodology; Nonparametric methodology; Wage gap; Blinder/Oaxaca; Quantile regression; Italy (search for similar items in EconPapers)
JEL-codes: J31 J82 C14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lma
Date: 2018
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https://www.econstor.eu/bitstream/10419/190972/1/GLO-DP-0293.pdf (application/pdf)

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Working Paper: More insecure and less paid? The effect of perceived job insecurity on wage distribution (2019) Downloads
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