In this article, we describe which challenges are affecting and transforming some of the key features of collective bargaining in Italy. The recent state interventionism on the labour market and industrial relations has posed a serious challenge to the traditional primacy of multi-employer bargaining and has exacerbated an insidious process of segmentation with regard to labour standards and protections.
In this paper, we estimate the urban wage premia (UWP) in Italy, with its economy characterized
by the interplay between collective bargaining and spatial heterogeneity in the cost
of living. We implement a reduced-form regression analysis using both nominal and real (in
temporal and spatial terms) wages. Our dataset for the 2005-2015 period includes, for workers’
characteristics, unique administrative data provided by Italian Social Security Institute and, for
the local CPI computation, housing prices collected by Italian Revenue Agency. For employees
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