Sources of wage inequality While in the above we have observed a clear trend of increasing wage inequality, especially the two processes of divergence at the top and convergence at the bottom, in this section we explore the determinants of wage inequality by distinguishing the role played by the gender, age, geographical area and occupational category of the workforce.
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Vanishing social classes? Facts and figures of the Italian labour market.
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While consumer inflation shown in the bottom part of the panel monotonically shrinks, in the dynamics of yearly and weekly real wages (in blue and orange respectively), three different phases can be detected: an increasing trend in the decade 1983–1993; an overall declining trend since 1993; a strong decoupling between yearly and weekly wages after 1998.