Over more than 30 years in Italy, wages for private sector employees "have been stagnant and more unequal," with only some relief for lower-middle incomes, thanks to income tax (Irpef) reforms. This is according to a report from the UPB, the Parliamentary Budget Office, which states that "since 1990, gross wages have fallen by an average of 6.6 percent in real terms." "Their dispersion has also grown, partly due to the increase in part-time work," the report states, noting the impact of "the growing segmentation of the labour market by sector, contract type and grade." Support for low wages provided through the Irpef instrument "now has limited scope," and it would be "better to act through expenditure."
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