Downward Wage Rigidity in Italy

Micro‐Based Measures and Implications

Dados Bibliográficos

ID9714701
AutoresFrancesco Devicienti (0000-0002-1406-2152, University of Torino, LABORatorio R. Revelli – Collegio Carlo Alberto), Agata Maida (0000-0003-0407-5547, LABORatorio R. Revelli – Collegio Carlo Alberto), Paolo Sestito (Bank of Italy)
Ano2007
Volume117
Fascículo524
PáginasF530-F552
Data de publicação2007-11-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Economic Journal (JOURNAL)
Identificadores do periódicoISSN: 0013-0133 • E-ISSN: 1468-0297
EditoraOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2007.02095.x
OpenAlexW2019932028
IdiomaEN
Citações recebidas9
Referências citadas16

Using the 1985-99 "WHIP" data, we find a sizable amount of downward wage rigidity in Italy, with a prevalence of real over nominal rigidity. The results hold when real rigidity is identified either with reference to collective bargaining dispositions or to price inflation. Consistently with the labour market reforms of the early 1990s, downward rigidities have become less important over time, with the reduction in real rigidities more than offsetting the rise in nominal rigidities. We also find that downward wage rigidities are positively related to labour reallocation and local unemployment rates, hinting at the macroeconomic relevance of our estimates. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007

Economics · Inflation (cosmology · Labour economics · Macroeconomics · Monetary economics · Real wages · Rigidity (electromagnetism · Unemployment · Wage · Wage bargaining · Firm Innovation and Growth · Italy: Economic History and Contemporary Issues · Labor market dynamics and wage inequality