Labor market reform and rent-sharing: A quasi-experiment experience

Ambra Poggi, Rosella Nicolini

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1 Citation (Scopus)


© 2015. Oxford University Agricultural and Applied Economics Association. All rights reserved. We analyze the impact on wages of the adoption of a rent-sharing remuneration scheme aimed at making labor institutions more flexible. We work within a quasi-experimental setting referring to a sample of Italian companies before and after the introduction of the Treu Reform (1997). Our estimations confirm that this reform not only increased insider workers' wages via rent-sharing, but also fueled a a-convergence process of the rent-sharing elasticity across the sectors at a different rate. Finally, we deliver a reasoned discussion of the consequences of implementing this reform on the Italian job market. This reform produced advances in the quality of job remuneration but it deepened a structural gap in the Italian labor market composition.
Original languageEnglish
Pages (from-to)618-631
JournalApplied Economic Perspectives and Policy
Publication statusPublished - 1 Jan 2016


  • Convergence
  • IV estimation
  • Rent-sharing


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