Wage formation in the Italian private sector after the 1992-93 income policy agreements

Piero, Casadio (2003): Wage formation in the Italian private sector after the 1992-93 income policy agreements. Published in: New Features of Wage Determination and Institutions in Europe, G Fagan, F.P Mongelli and J. Morgan (eds), Edwar Elgar (January 2003): pp. 112-133.

Abstract

The effects of the 1992-93 Income Policy Agreements on wages and wage differentials are analysed. In the last decade, both the aggregate real wages and their differentials among individual remained constant. Thanks to the effectiveness of the new Government target inflation, the national contracts embodied a substantial wage moderation, driving the inflation expectations. At the opposite, the firm-level contracts coverage only slightly increased, insufficiently distributing the productivity growth. The cooperative framework favoured the diffusion of organisational change, temporary contracts and flexibility. The income policy was crucial to introduce the wage moderation, favouring the employment growth and helping the fiscal adjustment. Currently such positive results are at risk.

• Item Type: MPRA Paper
• Language: English
• Keywords: Wage determination, Inflation, Income Policy, Performance-related Pay
• Subjects: J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J51 - Trade Unions: Objectives, Structure, and Effects; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials; J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J53 - Labor-Management Relations ; Industrial Jurisprudence

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