Devicienti, Francesco; Maida, Agata; Sestito, Paolo - Collegio Carlo Alberto, Università degli Studi di Torino - 2003
This paper uses administrative longitudinal micro-data from the Social Security Institute (INPS) to estimate the extent of nominal and real wage rigidity in Italy. Using a switching regime model of individual wage changes, which accounts for both the determinants of notional wage changes and...