Abstract
The article presents preliminary work on the role of unions and collective bargaining in the process of wage determination at firm level in Italy. The characteristics of the wage determination process and how it effects the composition of pay in Italian manufacturing is described. The methodology used to estimate the union/non-union differential and its application to the Italian case is provided. The data set and variables uses are described and regression estimates are presented. A particular focus is placed on the relevance of union density and firm size to the level and composition of pay for both manual and non-manual workers. JEL: L60
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