Giangregorio, LucaFana, Marta2025-03-192025-03-192024Giangregorio L, Fana M. What’s behind increasing wage inequality? Explaining the Italian case using RIF-OLS. Economia Politica. 2024;41(1):229-65. DOI: 10.1007/s40888-023-00303-01120-2890http://hdl.handle.net/10230/69970This paper aims to identify how and to what extent the Italian labour market structure, in terms of job composition and institutional changes, shaped the dynamics of wages and wage inequality in the decade between 2007 and 2017. We investigate the main determinants behind the rise in wage inequality in Italy by using Recentered Influence Function (RIF) regressions. This econometric approach allows—on the one hand—to directly assess the effects on the unconditional distribution and on “beyond the mean” statistics, like the Gini coefficient. On the other, it decomposes inequality into endowment and wage effects, following the standard Oaxaca-Blinder technique. We observe that working structures and institutional changes—contractual arrangements (permanent vs temporary contracts) and working hours (full-time vs part-time)—are the main factors in explaining the deterioration in wages at the bottom of the income distribution scale, and the consequent increase in wage inequality.application/pdfeng© The Author(s) 2023. This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.info:eu-repo/semantics/articlehttp://dx.doi.org/10.1007/s40888-023-00303-0Inequality decompositionLabour market structureUnconditional regressionsWage inequalityinfo:eu-repo/semantics/openAccess