{
  "title": "Italy: Selected Issues",
  "publication": "IMF Staff Country Reports, July 27, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2017/07/27/italy-selected-issues-45140",
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  "summary": "This Selected Issues paper analyzes the competitiveness and wage bargaining reform in Italy. The growth of Italian exports has lagged that of euro area peers. Wages are set at the sectoral level and extended nationally.",
  "publishDate": "2017-07-27",
  "series": "IMF Staff Country Reports",
  "sections": [
    {
      "heading": "Competitiveness and wage bargaining reform — core analysis",
      "content": "- The paper analyzes competitiveness and wage bargaining reform in Italy.\n- Growth of Italian exports has lagged that of euro area peers.\n- Wages are set at the sectoral level and extended nationally.\n- Sectoral wage setting does not respond well to:\n  - firm-specific productivity,\n  - regional disparities,\n  - skill mismatches.\n- Nominally rigid wages have implied adjustment through:\n  - lower profits,\n  - lower employment."
    },
    {
      "heading": "Quantified impacts and simulation results",
      "content": "- Moving from sectoral- to firm-level wage setting yields substantial gains of at least 3.5 percentage points.\n- Reform would lead to lower unemployment (or higher employment) rate.\n- Reform would produce a notable improvement in Italy’s competitiveness over the medium term."
    },
    {
      "heading": "Policy implications and recommendations (as inferred from analysis)",
      "content": "- Shift wage bargaining from sectoral to firm-level to better align wages with firm-specific productivity, regional conditions, and skill composition.\n- Address nominal wage rigidities to reduce adjustment via profit and employment losses.\n- Implement reforms that enhance export competitiveness given lagging export growth relative to euro area peers.\n\n---\n\n Content in this bundle\n\n- Country Report\n  - Country Report (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Country Report (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/cr/issues/2017/07/27/italy-selected-issues-45140"
    }
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    "Published: July 27, 2017",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781484312568.002",
    "The paper analyzes competitiveness and wage bargaining reform in Italy.",
    "Growth of Italian exports has lagged that of euro area peers.",
    "Wages are set at the sectoral level and extended nationally.",
    "Sectoral wage setting does not respond well to:",
    "Nominally rigid wages have implied adjustment through:",
    "Moving from sectoral- to firm-level wage setting yields substantial gains of at least 3.5 percentage points.",
    "Reform would lead to lower unemployment (or higher employment) rate.",
    "Reform would produce a notable improvement in Italy’s competitiveness over the medium term.",
    "Shift wage bargaining from sectoral to firm-level to better align wages with firm-specific productivity, regional conditions, and skill composition.",
    "Address nominal wage rigidities to reduce adjustment via profit and employment losses.",
    "Implement reforms that enhance export competitiveness given lagging export growth relative to euro area peers.",
    "**Country Report**"
  ],
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