Urban wage premia, cost of living, and collective bargaining
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