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AbstractJob polarization instead of pure upgrading is emerging in European industries. This article focuses on polarization of the employment structure and contributes empirical evidence to explain patterns of occupational change in relation to four major groups: managers, clerks, craft workers and manual workers. Building on the structural approach, the author aims to analyse employment dynamics at the sectoral level and shed light on job polarization trends in Europe. Job polarization clearly emerges, mainly in service sectors, and in some European countries it is leading to a rejection of the hypothesis of skill upgrading sustained by the skill‐biased technical change paradigm.

ResumenLa autora se centra en la polarización del empleo y proporciona evidencia para explicar los patrones de variación ocupacional sobre la base de cuatro macrogrupos de la CIUO según el nivel de calificación. Adoptando un enfoque estructural y sectorial, y mediante un análisis shift‐share, pone de relieve diferencias entre las manufacturas y los servicios, así como entre países. La polarización se observa más bien en los servicios, y en algunos países europeos conduce a rechazar la teoría del sesgo del cambio tecnológico hacia el trabajo calificado.

RésuméL'auteure s'intéresse à la polarisation des emplois en Europe, dans une étude empirique portant sur cinq pays (Allemagne, Espagne, France, Italie et Royaume‐Uni) suivis de 1999 à 2011. Elle cherche à faire ressortir l'évolution de la structure de l'emploi dans une perspective sectorielle, en considérant quatre macrogroupes professionnels (établis en fonction du niveau de qualification et du salaire) et en tenant compte du rapport à la technologie. Un indice de polarisation est aussi utilisé. Plusieurs scénarios émergent, mais la polarisation domine dans les services et dans certains pays et conduit à rejeter la thèse d'un progrès technique biaisé en faveur des qualifcations.

AbstractThis study analyses the relationship between flexible employment, productivity and wages, along their distributions. We use an original firm-level dataset, which combines information on workplace characteristics fromRilevazione su Imprese e Lavoro(RIL) with theAnalisi Informatizzata delle Aziende Italiane(AIDA) balance sheet information for the universe of Italian non-agriculture/financial corporations. We employ different quantile regression models to panel data and find, first, that use of temporary contracts is associated to a reduction in labour productivity and wages at each point in the corresponding distribution; and second, that the negative relationship between labour productivity and wages decreases in magnitude along the quantiles of the productivity and wage distributions, suggesting that low-productive/low-wage firms use temporary employment to permanently staff positions and to compress labour costs.

In the aftermath of the crisis, Europe is becoming more polarised in terms of employment, competitiveness and industrial specialisation. A 'German-centred core' which maintained employment and production - has emerged, contrasted by a 'Southern periphery', where major economic losses have occurred. Such geographical divergence is associated with a further polarisation in terms of skills. A new European industrial policy is needed to reverse this polarisation process and its dangerous implications for trade balances and cohesion.

This article analyzes wage dispersion in a sample of Italian firms, by taking advantage of a unique Linked Employer-Employee dataset (LEED) merging four data sources from the National Institute of Statistics. An in-depth descriptive analysis conveys that knowledge-intensive services record the highest within- and between-firms wage dispersion in the sample. Regression-based results show that innovation does not drive up inequality in large companies. However, it can contribute to enlarge the within-firm wage dispersion as well as the wage gap across small firms.

AbstractUsing an original database on medium and large Italian firms built by merging theRilevazione Imprese e Lavororun by INAPP in 2010 and 2015 with the AIDA archive by Bureau Van Dijk, we show that the trend of the labour share differs along the labour share distribution. We carry out Unconditional Quantile Regression decompositions to explore the main drivers behind this heterogeneity. Thus, we contribute to the literature on the dynamics of the labour share since we investigate phenomena which cannot be observed through a macro perspective or by looking at a single parameter of the labour share distribution. After including in our specifications several firm-level characteristics and considering composition effects, we find that outsourcing is the main factor which plays a role in reducing the labour share along the distribution. Further different mechanisms act in the various parts of the distribution: unionization contributes to increase the labour share at the top of the labour share distribution, while the introduction of some forms of product (process) innovations is associated with a negative (positive) change in the labour share for those firms at the bottom of the labour share distribution.

We explore the link between personal and functional income distribution at the micro level. We focus on the European experience over the crisis, comparing European households' incomes in 2007, 2012 and 2014. Throughout the period, most households earned income from more than one source, and a positive relation exists between both the capital and labour shares of incomes and total household incomes. We find that functional distribution, i.e. what kind of income a household earns, significantly affects both its position in the income distribution and its chances of mobility within it, and such impact is magnified by the crisis. However, the geography of European households' incomes is much more complex than frequently suggested. In general, the more households depend on labour incomes the more likely they were to move downwards in the income distribution. However, this does not imply that capital incomes made households more likely to move upwards.