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Title: The Institutional Adjustment Margin to Import Competition: Evidence from Italian Minimum Wages
Author: Matano, Alessia
Naticchioni, Paolo
Vona, Francesco
Keywords: Importacions
Salari mínim
Mercat de treball
Minimum wage
Labor market
Issue Date: 2019
Publisher: Universitat de Barcelona. Facultat d'Economia i Empresa
Series/Report no: [WP E-IR19/05]
[WP E-AQR19/04]
Abstract: A growing body of research has contributed to understanding the labor market and political effects of globalization. This paper explores an overlooked aspect of trade-induced adjustments in the labor market: the institutional aspect. We take advantage of the two-tier collective bargaining structure of the Italian labor market, whereby the first tier entails setting minimum wages at the contract level. Using an instrumental variable strategy and exploiting variations in contract-level exposure to trade, we find for the 1995-2003 period that on average, the surge in imports decreased contractual minimum wages by 1.5%. This impact increased with the increase in the share of unskilled workers employed under this contract. This negative institutional effect contrasts with a nonsignificant effect of trade on total wages, with the latter becoming positive and large only for highly skilled workers.
Note: Reproducció del document publicat a:
It is part of: IREA – Working Papers, 2019, IR19/05
AQR – Working Papers, 2019, AQR19/04
Appears in Collections:AQR (Grup d’Anàlisi Quantitativa Regional) – Working Papers
Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

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