Diffusion and outlook of firm-level bargaining in Italy

The article surveys the main actions, either defined by social partners or by government intervention, which have attempted to encourage firm-level bargaining decentralization in recent years. The overall structure and the relative importance of different levels of bargaining have not however been modified by the many innovations introduced. Empirical evidence shows that firm-level bargaining has been associated with innovative managerial practices, but also that a significant share of firms would be willing to sign contracts that would grant higher wages or preserve occupational levels in order to obtain higher flexibility in the use of the workforce. Uncertainty in the application of laws and contracts can make it harder to reach such deals.