Convergence of Italy’s Tradable Sector Growth Rate and Wage Stagnation

Name: Convergence of Italy’s Tradable Sector Growth Rate and Wage Stagnation
Brand: Vita e Pensiero
Availability: OnlineOnly

digital

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Section

Open Access

Title

Convergence of Italy’s Tradable Sector Growth Rate and Wage Stagnation

Author

Fedele De Novellis

Publisher

Vita e Pensiero

Format

Article |

Pdf

Pages

Online from

06-2020

Doi

10.26350/000518_000039

Issn

0035-676X (print) | 1827-7918 (digital)

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Description

In the last five years the Italian manufacturing sector has reduced the growth gap vis-à-vis the euro area, in the face of a continuing growth differential in the service sector. The improvement of cost ompetitiveness is among the factors that led to this recovery in the manufacturing sector. However, as long as competitiveness gains mainly depend on the slowdown in wages rather than on increases in productivity extended to all sectors of the economy, the process cannot be considered virtuous. It entails not only beneficial effects on exports, but also unfavourable consequences on real wages and household incomes and, therefore, on domestic demand.