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Cited by 17Labor market dynamics and wage inequalityLabor Movements and UnionsLegal and Labor Studies

The employment effects of collective wage bargaining

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Fanfani, Bernardo·2023·Journal of Public Economics
DOI 10.1016/j.jpubeco.2023.105006
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Abstract

This study examines the wage and employment effects of Italian collective wage bargaining. It analyzes monthly data on the population of private-sector employees, matched with the information on contractual pay levels set by industry-wide agreements, which were bargained by the representatives of trade unions and employers at the national level. The research design exploited the generalized wage growth induced by changes in the contractual pay levels, whose timing and size differ across collective agreements. The specification adopted compared the outcomes of interest within sectors and geographical locations, and among workers subject to different collective contracts. The study results show that contractual wage growth raised the actual pay levels and had significant negative effects on employment. These employment effects were broadly consistent with the Hicks–Marshall laws and with several hypotheses of traditional centralized wage bargaining models.

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  • Fanfani (2023) finds that contractual wage growth raises actual pay levels but has significantly negative employment effects, consistent with canonical centralized-bargaining models.

    “Fanfani (2023) uses Italian administrative data matched to industry-wide collective agreements, and finds that contractual wage growth raises actual pay levels but has significantly negative employment effects, consistent with canonical centralized-bargaining models.”

    From Labor Market Consequences of Generative AI: Early Evidence from Norway (2026) · cites this paper as Fanfani, 2023

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Cited by

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Authors
Fanfani, B.
Affiliations
University of Turin (IT)
Corresponding author
Fanfani, Bernardo
ORCID
Fanfani, Bernardo
Venue
Journal of Public Economics
Publisher
Elsevier BV
Published
2023-11
Volume
227
Pages
105006
ISSN
0047-2727 (ISSN-L)
DOI
10.1016/j.jpubeco.2023.105006
OpenAlex
W4387605225
Cited by
17
References
4
Citations by year
2026: 3 · 2025: 9 · 2024: 4 · 2023: 1
FWCI
3.46
Type
journal article
Language
en
Open access
Licence
Locations
  • Journal of Public Economics (publishedVersion, cc-by)
  • Institutional Research Information System University of Turin (University of Turin) (submittedVersion, other-oa)
  • RePEc: Research Papers in Economics (submittedVersion)
Funders
  • Compagnia di San Paolo
  • Università Cattolica del Sacro Cuore
  • Università degli Studi di Torino
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
  • Social Sciences › Public Administration › Labor Movements and Unions
  • Social Sciences › Business, Management and Accounting › Industrial relations › Legal and Labor Studies
Keywords
employment effects, wage growth, trade unions, centralized wage bargaining, Italian labour market, private sector employees

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