The effects of unions on wage inequality The Italian case in the nineties

نویسندگان

  • Daniele Checchi
  • Laura Pagani
چکیده

In this paper we analyse the contribution of union activity in 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 establishments inequality). After reviewing aggregate evidence on the first dimension, we explore the second route making use of a 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 contribute to inequality reduction.

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تاریخ انتشار 2004