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Losing Control? Unions’ Representativeness, Pirate Collective Agreements, and Wages

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  • Claudio Lucifora
  • Daria Vigani
Abstract
This paper documents the evolution of sector‐level collective agreements in Italy and investigates wage differentials associated with the diffusion of non‐representative agreements, often signed by unknown organizations—that is, the so‐called pirate agreements. Using employer–employee data from Social Security Archives, we find that non‐representative agreements are associated with significant wage penalties (up to −8 percent) compared with regular collective agreements. Wage penalties are heterogeneous across firm size and industry affiliation. It is also shown that half of the wage differential is due to selection effects. Finally, we provide suggestive evidence of firms’ coping strategies, showing that pirate agreements exhibit comparatively higher employment levels.

Suggested Citation

  • Claudio Lucifora & Daria Vigani, 2021. "Losing Control? Unions’ Representativeness, Pirate Collective Agreements, and Wages," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 60(2), pages 188-218, April.
    • Handle: RePEc:bla:indres:v:60:y:2021:i:2:p:188-218
    DOI: 10.1111/irel.12278
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    9. Bavaro, Michele & Raitano, Michele, 2024. "Is working enough to escape poverty? Evidence on low-paid workers in Italy," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 495-511.
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    14. Albanese, Andrea & Gallo, Giovanni, 2020. "Buy flexible, pay more: The role of temporary contracts on wage inequality," Labour Economics, Elsevier, vol. 64(C).
    15. Russell Davidson & Andrea Monticini, 2023. "Bootstrap Performance with Heteroskedasticity," DISCE - Working Papers del Dipartimento di Economia e Finanza def130, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    16. Bustos, Emil, 2024. "Collectively Bargained Wages and Female Earnings: Evidence from Swedish Local Governments," Working Paper Series 1494, Research Institute of Industrial Economics.
    17. Irene Torrini & Claudio Lucifora & Antonio Russo, 2022. "The Long-Term Effects of Hospitalization on Health Care Expenditures: An Empirical Analysis for the Young-Old Population," DISCE - Working Papers del Dipartimento di Economia e Finanza def117, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    18. Giovanni Orlandini & Guglielmo Meardi, 2023. "Round Table. Implementing the EU Directive on adequate minimum wages in southern Europe: the odd case of Italy," Transfer: European Review of Labour and Research, , vol. 29(2), pages 253-259, May.
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    More about this item

    JEL classification:

    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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