TY  - RPRT
        AU  - Cappellari, Lorenzo
AU  - Fanfani, Bernardo
        TI  - Collective Bargaining and the Wage Structure
        PY  - 2026/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18797
        UR  - https://www.iza.org/publications/dp18797
        AB  - We study how updates in pay floors set by collective bargaining agreements (CBAs) shape the wage structure in Italy. We estimate stacked event-panel difference-indifferences models around changes of contractual minima and trace distributional impacts. Pay-floor hikes of 2.2% on average raise mean log FTE daily wages by 2.2%, but effects are near zero at the 10th percentile and stronger at the 90th, implying inequalityenhancing
wage-rate responses. This asymmetry reflects both within-agreement heterogeneity, as lower-paid workers within CBAs respond less, and between-agreement heterogeneity, as low-wage CBAs exhibit weaker pass-through. Non-compliance with pay floors is higher in low-wage CBAs, thus it is a potential driver of asymmetries even if its level is not affected by wage updates. Pay-floor hikes reduce employment and days worked only among low-wage workers and only among full-time jobs, which may further contribute to the muted wage response in the lower tail through selection mechanisms.
        KW  - collective bargaining
KW  - contractual minimum wages
KW  - wage structure
        ER  -