This paper analyses the evolution of inequality and wage volatility in Italy between 1990 and 2021 using administrative data on non-farm private sector employees from INPS. Furthermore, it considers the impact of the spread of part-time and fixed-term contracts on the pattern of inequality.
The inequality and volatility of annual earnings have increased systematically over the observed period. The increase in inequality is mainly attributable to greater heterogeneity in the number of weeks worked per year due to a wider spread of atypical contracts. Furthermore, the share of workers on atypical contracts for extended periods has increased.
