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dc.contributor.authorPastore, Francescoen_US
dc.description.abstractThe Saint Valentine's decree (1984) and the ensuing hard fought referendum (1985), which reduced the automatisms of scala mobile, started a process of redefinition of wage fixing in Italy, which culminated with the final abolition of scala mobile (1992) and the approval of Protocollo d'intesa (1993). Since then, following New Corporatist principles, a national system of centralised wage bargaining (concertazione) and the so-called institutional indexation have governed the determination of wages. This paper aims to assess the impact of such incomes policy agreements on the long and short run equilibrium relationship between real wages, labour productivity and unemployment. Different time series econometric tools confirm that incomes policy has altered the relationship between real wages and productivity, generating not only a permanent downward impact on prices, but also on real wages. In a sense, incomes policy has caused a new form of (upward) wage rigidity. Interestingly, no impact of incomes policy on the weak relationship between real wages and unemployment is detected. The analysis calls for a careful revision of the 1993 Protocol aimed at: a) better protecting the purchasing power of real wages without losing control on inflation; b) introducing growth generating mechanisms.en_US
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen_US
dc.relation.ispartofseries|aDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit |x5082en_US
dc.subject.keywordNew Keynesian macroeconomic theoryen_US
dc.subject.keywordmodels of industrial relationsen_US
dc.subject.keywordPhillips Curveen_US
dc.subject.keywordincomes policyen_US
dc.subject.keywordcentralised wage bargainingen_US
dc.subject.keywordmacroeconomic policy evaluationen_US
dc.subject.keywordincome distributionen_US
dc.subject.keywordcointegration analysisen_US
dc.subject.keywordstructural break testingen_US
dc.subject.keywordscala mobileen_US
dc.subject.keywordProtocollo d'intesaen_US
dc.titleAssessing the impact of incomes policy: The italian experienceen_US
dc.type|aWorking Paperen_US

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