The aim of the present paper is to address the wage flexibility debate by focusing on evidence for the Italian economy on two related aspects: decentralized bargaining—at company or district level, and implementation of contingent pay introduced at this level of bargaining. The paper also deals with the role of volatility represented by employment fluctuations, which may condition adoption of variable pay systems. These objectives are carried out on the basis of information on a nationally representative sample of manufacturing and non-manufacturing firms. This dataset is obtained by merging two different sources: the Bureau Van Dijk AIDA archive, which provides balance-sheet data, and the ISFOL Employer and Employee Survey (RIL) for 2005 and 2007, containing firm-level information on workplace practices. In this kind of analysis, a whole set of information are accounted for: personnel organization, recruitment strategies, position of employees, training investments, and the presence of unions. Evidence and estimates offered in this paper show that firm level negotiations and contingent pay contracts are positively related to the presence of unions. Their role enhances the probability of decentralized agreements which typically enhance flexibility in work organization and pay. In addition, it has been found that unions may play a role in negotiating responses to economic volatility and uncertainty.
Firm level bargaining and volatility in Italian firms
DAMIANI, Mirella;
2012
Abstract
The aim of the present paper is to address the wage flexibility debate by focusing on evidence for the Italian economy on two related aspects: decentralized bargaining—at company or district level, and implementation of contingent pay introduced at this level of bargaining. The paper also deals with the role of volatility represented by employment fluctuations, which may condition adoption of variable pay systems. These objectives are carried out on the basis of information on a nationally representative sample of manufacturing and non-manufacturing firms. This dataset is obtained by merging two different sources: the Bureau Van Dijk AIDA archive, which provides balance-sheet data, and the ISFOL Employer and Employee Survey (RIL) for 2005 and 2007, containing firm-level information on workplace practices. In this kind of analysis, a whole set of information are accounted for: personnel organization, recruitment strategies, position of employees, training investments, and the presence of unions. Evidence and estimates offered in this paper show that firm level negotiations and contingent pay contracts are positively related to the presence of unions. Their role enhances the probability of decentralized agreements which typically enhance flexibility in work organization and pay. In addition, it has been found that unions may play a role in negotiating responses to economic volatility and uncertainty.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
