Labor force heterogeneity and wage polarization: Italy and Spain
Abstract
Purpose
The purpose of this paper is to assess the change in the Italian and Spanish wage polarization degree in a time of economic crisis, taking into account the factors affecting labor force heterogeneity. Gender differences in the evolution of social fractures are considered by carrying out the analysis separately for males and females.
Design/methodology/approach
The approach by Palacios-Gonzánlez and García-Fernández (2012) on polarization is applied to the microdata provided by the EU Living Conditions Surveys (2007, 2010 and 2012). According to Palacios-Gonzánlez and García-Fernández’s approach, polarization is generated by two tendencies that contribute to the generation of social tension: the homogeneity or cohesion within group and the heterogeneity between groups. The following labor force characteristics are considered: gender, level of education, type of contract, occupational status and job status.
Findings
The results for Italy reveal a higher increase of polarization for women than for men from the perspective of the type of contract. In Spain, the wage polarization of women also increases more intensively compared to men from the perspectives of level of education, job status and occupational status, while in Italy the reduction of the wage polarization index by level of education can be related, above all, to an increase in overqualification of women.
Originality/value
While the empirical literature on polarization has made considerable investigation into employment and job polarization, this paper explores the rather less explored matter of wage polarization. Furthermore, particular attention is paid to the impact on polarization of the Great Recession.
Keywords
Acknowledgements
A previous version of this paper has been presented at the XXIX “Associazione Italiana Economisti del Lavoro” (AIEL) Conference held in Pisa in September 2014. The authors thank the conference participants and an anonymous referee for their stimulating comments. The authors of this paper have not made their research data set openly available. Any enquiries regarding the data set can be directed to the corresponding author.
Citation
Addabbo, T., García-Fernández, R.M., Llorca-Rodríguez, C.M. and Maccagnan, A. (2018), "Labor force heterogeneity and wage polarization: Italy and Spain", Journal of Economic Studies, Vol. 45 No. 5, pp. 979-993. https://doi.org/10.1108/JES-03-2017-0071
Publisher
:Emerald Publishing Limited
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