Temporary/Permanent Workers' Wage Gap: A Brand-new Form of Wage Inequality?

By easing restrictions on the use of short‐term contracts, the 30/2003 act represents contemporaneously the more extensive and the more radical policy aimed at introducing flexibility in the Italian labour market. By virtue of a difference‐in‐differences estimator, the paper provides an estimate of...

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Bibliographic Details
Published in:Labour (Rome, Italy) Italy), 2010-06, Vol.24 (2), p.178-200
Main Author: Elia, Leandro
Format: Article
Language:English
Subjects:
Estimation
Full employment
Income Inequality
Inequality
Italy
Labor Market
Labour contract
Labour market
Labour market flexibility
Reform
Skilled workers
Skills
Studies
Temporary employment
Wage differential
Wage differentials
Wages
Workers
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Summary:By easing restrictions on the use of short‐term contracts, the 30/2003 act represents contemporaneously the more extensive and the more radical policy aimed at introducing flexibility in the Italian labour market. By virtue of a difference‐in‐differences estimator, the paper provides an estimate of the impact of the 30/2003 reform on the wage gap across fixed‐term and long‐term employees. It will be given evidence that the policy has widened the wage differentials and the effect is particularly stronger to skilled workers compared with unskilled workers. These findings would suggest the existence of a possible brand‐new form of wage inequality.
ISSN:1121-7081
1467-9914
DOI:10.1111/j.1467-9914.2010.00478.x