Cost of living, Centralized Wage Setting and Urban Wage Premia

lunedì 12 dicembre 2016
ore 14.00
LUMSA - Sala del Consiglio
Via Pompeo Magno 22, Roma

Il 12 dicembre alla LUMSA si svolgerà il seminario Cost of living, Centralized Wage Setting and Urban Wage Premia, un appuntamento che rientra nel programma dei seminari del Center for Relationship Banking and Economics.

All’evento, i cui temi principali sono il costo della vista e il sistema di reddito italiano, parteciperà la dott.ssa Claudia Vittori (Sapienza Università di Roma), autrice del paper Cost of living, Centralized Wage Setting and Urban Wage Premia con il seguente abstract:

This paper aims at estimating the extent of the urban wage premia in Italy, a country characterized by a centralized wage setting system and by a spatially heterogeneous cost of living. We make use of a unique administrative employer-employee database on the universe of the Italian workers, merged with the housing prices collected by Osservatorio Mobiliare Italiano (OMI), used to compute a cost of living measure at the municipality level, for the 2005-2015 period. We implement a regression analysis to compute nominal and real, in spatial terms, urban wage premia, controlling for unobserved individual heterogeneity and endogeneity issues. Our results confirm the presence of positive, although small, nominal urban wage premia, and of negative and not negligible real urban wage premia: urban workers suffer a penalty in terms of real spatial wages. Our results are robust to different computations of local price indexes, also exploiting official price indexes provided by ISTAT. We also discuss the possible explanations that make individuals living in urban areas in presence of a negative urban wage premium, such as amenities, quality of the public services, and unemployment probabilities.