Competitiveness and Wage Bargaining Reform in Italy
Competitiveness and Wage Bargaining Reform in Italy

Author: Mr.Alvar Kangur

Publisher: International Monetary Fund

Published: 2018-03-16

Total Pages: 38

ISBN-13: 1484347625

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The growth of Italian exports has lagged that of euro area peers. Against the backdrop of unit labor costs that have risen faster than those in euro area peers, this paper examines whether there is a competitiveness challenge in Italy and evaluates the framework of wage bargaining. Wages are set at the sectoral level and extended nationally. However, they do not respond well to firm-specific productivity, regional disparities, or skill mismatches. Nominally rigid wages have also implied adjustment through lower profits and employment. Wage developments explain about 45 percent of the manufacturing unit labor cost gap with Germany. In a search-and-match DSGE model of the Italian labor market, this paper finds substantial gains from moving from sectoral- to firm-level wage setting of at least 3.5 percentage points lower unemployment (or higher employment) rate and a notable improvement in Italy’s competitiveness over the medium term.

Competitiveness and Wage Bargaining Reform in Italy
Competitiveness and Wage Bargaining Reform in Italy

Author: Mr.Alvar Kangur

Publisher: International Monetary Fund

Published: 2018-03-16

Total Pages: 38

ISBN-13: 1484348117

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The growth of Italian exports has lagged that of euro area peers. Against the backdrop of unit labor costs that have risen faster than those in euro area peers, this paper examines whether there is a competitiveness challenge in Italy and evaluates the framework of wage bargaining. Wages are set at the sectoral level and extended nationally. However, they do not respond well to firm-specific productivity, regional disparities, or skill mismatches. Nominally rigid wages have also implied adjustment through lower profits and employment. Wage developments explain about 45 percent of the manufacturing unit labor cost gap with Germany. In a search-and-match DSGE model of the Italian labor market, this paper finds substantial gains from moving from sectoral- to firm-level wage setting of at least 3.5 percentage points lower unemployment (or higher employment) rate and a notable improvement in Italy’s competitiveness over the medium term.

Wage bargaining under the new European Economic Governance
Wage bargaining under the new European Economic Governance

Author: Guy Van Gyes

Publisher: ETUI

Published: 2015-09-28

Total Pages: 419

ISBN-13: 2874523739

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Within the framework of the new European economic governance, neoliberal views on wages have further increased in prominence and have steered various reforms of collective bargaining rules and practices. As the crisis in Europe came to be largely interpreted as a crisis of competitiveness, wages were seen as the core adjustment variable for ‘internal devaluation’, the claim being that competitiveness could be restored through a reduction of labour costs. This book proposes an alternative view according to which wage developments need to be strengthened through a Europe-wide coordinated reconstruction of collective bargaining as a precondition for more sustainable and more inclusive growth in Europe. It contains major research findings from the CAWIE2 – Collectively Agreed Wages in Europe – project, conducted in 2014–2015 for the purpose of discussing and debating the currently dominant policy perspectives on collectively-bargained wage systems under the new European economic governance.

Italy
Italy

Author: International Monetary Fund. European Dept.

Publisher: International Monetary Fund

Published: 2019-02-06

Total Pages: 71

ISBN-13: 1484397711

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This 2018 Article IV Consultation highlights that Italy has been struggling with low economic growth and poor social outcomes and structural weaknesses have been at the core of this economic underperformance. Growth is projected to slow further, and the risk of recession has risen. The extent to which risks materialize depends largely on Italy’s policies. The authorities felt strongly that a fiscal stimulus is needed to promote economic growth and improve social outcomes. The authorities are also seeking to reduce temporary employment and support job search. The report suggests that faster potential growth is the only durable way for Italy to improve outcomes and enhance resilience. A package of structural reforms, a credible fiscal consolidation based on growth-friendly and inclusive measures, and bank balance sheet strengthening structural reforms, fiscal policy, and financial stability are also recommended. As by facilitating re-alignment of wages with productivity at the firm and regional levels, Italy’s high structural unemployment would fall, as would the continued heavy resort to temporary employment.

Italy
Italy

Author: International Monetary Fund. European Dept.

Publisher: International Monetary Fund

Published: 2017-07-27

Total Pages: 68

ISBN-13: 1484312570

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This 2017 Article IV Consultation highlights that the Italian economy is in the third year of a moderate recovery. Supported by exceptionally accommodative monetary policy, fiscal easing, low commodity prices, and the government’s reform efforts, the economy grew by 0.9 percent in 2016 and continued to expand in the first quarter of 2017. Unemployment and nonperforming loans have declined somewhat from their crisis-driven peaks. Growth is projected at about 1.3 percent in 2017 and about 1 percent in 2018–20 as favorable tailwinds become less supportive. Growth could surprise on the upside in the near term, including from a stronger European recovery.

Labour Market Reforms in Portugal 2011-15 A Preliminary Assessment
Labour Market Reforms in Portugal 2011-15 A Preliminary Assessment

Author: OECD

Publisher: OECD Publishing

Published: 2017-02-21

Total Pages: 179

ISBN-13: 9264269576

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This report evaluates the comprehensive labour market reforms undertaken in Portugal in 2011-15. It reviews reforms in employment protection legislation, unemployment benefits, activation, collective bargaining, minimum wages and working time, and assesses the available evidence on their impact.

Italy: Quantifying the Benefits of a Comprehensive Reform Package
Italy: Quantifying the Benefits of a Comprehensive Reform Package

Author: Michal Andrle

Publisher: International Monetary Fund

Published: 2018-03-16

Total Pages: 17

ISBN-13: 1484347617

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This paper seeks to quantify the net benefits of a comprehensive reform package aimed at addressing Italy’s inter-related challenges. Specifically, it simulates the growth and competitiveness effects of a package of fiscal, financial, wage bargaining, and other structural reforms. Credible implementation of such a package yields substantial mediumterm dividends at negligible near-term growth costs. Real GDP growth is estimated to be substantially higher over the medium term, while the real effective exchange rate depreciates notably.

Unions and Collective Bargaining
Unions and Collective Bargaining

Author: Toke Aidt

Publisher: Directions in Development

Published: 2002

Total Pages: 188

ISBN-13:

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This book offers an extensive survey and synthesis of the economic literature on trade unions and collective bargaining and their impact on micro-and macro-economic outcomes. The authors demonstrate the effects of collective bargaining in different country settings and time periods. A comprehensive reference, this book will be of interest to students and scholars of labor policy as well as to policy makers and anyone with an interest in the economic consequences of unionism.

Negotiating Our Way Up Collective Bargaining in a Changing World of Work
Negotiating Our Way Up Collective Bargaining in a Changing World of Work

Author: OECD

Publisher: OECD Publishing

Published: 2019-11-18

Total Pages: 270

ISBN-13: 9264362576

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Collective bargaining and workers’ voice are often discussed in the past rather than in the future tense, but can they play a role in the context of a rapidly changing world of work? This report provides a comprehensive assessment of the functioning of collective bargaining systems and workers’ voice arrangements across OECD countries, and new insights on their effect on labour market performance today.