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The dog that barks doesn’t bite: coverage and compliance of sectoral minimum wages in Italy

Year: 2018

Type: article

Abstract: This paper provides a comprehensive portrait of the level and compliance with sectoral minimum wages in Italy between 2008 and 2015. The results show that wage floors in Italy are relatively high both in absolute terms and relative to the median wage. However, non-compliance rates are not negligible: on average, around 10% of workers are paid 20% less than the minimum wage established in their reference collective agreement. Non-compliance is particularly high in the South and in micro and small firms, and it affects especially women and temporary workers. Overall, wages in the bottom of the distribution appear to be largely unaffected by minimum wage increases. More effective enforcement practices are therefore needed to safeguard a level playing field for firms and ensure that minimum wage increases are effectively reflected in pay increases for workers at the bottom of the distribution. JEL Classification J08, J31, J52, J83

Source: IZA Journal of Labor Policy

DOI: 10.1186/s40173-018-0096-6

Author: Andrea Garnero

Institutions: Organisation de Coopération et de Développement Economiques, Université Libre de Bruxelles, IZA - Institute of Labor Economics

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $1,105