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The political economy of work security and flexibilityItaly in comparative perspective$
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Fabio Berton and Matteo Richiardi

Print publication date: 2012

Print ISBN-13: 9781847429070

Published to Policy Press Scholarship Online: January 2013

DOI: 10.1332/policypress/9781847429070.001.0001

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Flexibility and wage dynamics

Flexibility and wage dynamics

(p.79) Five Flexibility and wage dynamics
The political economy of work security and flexibility

Fabio Berton

Matteo Richiardi

Stefano Sacchi

Policy Press

Many economic benefits that workers receive for their work do not enter the unitary gross wage; the most common examples are pension and other social security contributions paid for by the employers, forms of deferred wage, and extra months of salary. As non-standard workers often do not get such benefits – or get them to a lesser extent than workers with open-ended contracts – their unitary gross wage should, with all other things being equal, be larger than that earned by standard workers in order to provide them with the same level of income security. Estimates of wage gaps between standard and non-standard workers on different data bases show instead that far from being positive, this differential is at best null, if not negative. To different extents, the same holds true also in Japan, Germany and Spain. On top of facing less employment security, thus, non-standard workers also suffer from less income security.

Keywords:   Income security, Wage gaps, Gross wage, Overall economic treatment

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