Nowadays, the topic of the minimum wage is being debated all over the world; from the United States with the Democratic party’s “Fight for 15$”, to the United Kingdom with former Prime Minister Cameron’s proposal. The issue of wages structure is crucial, considering the effects that it has on productivity at the firm level. During the last twenty years, firms’ productivity in Italy increased by only 5%, eight times less than the increase in the USA. This gap can be explained, at least in part, by the peculiar way in which wages are built.

From UK and US, Italy takes inspiration to begin a renovation process with the aim to raise the minimum legal wage. However, the Italian background is quite different: neither a central government source nor a clear cut between apprentices and over 25 – like it happens respectively in US and UK, do exist. Differently, in Italy, collective bargaining is the main channel through which different wage amounts are settled, on the basis of acquired competencies, seniority and commitment.

The aim of the article is to analyze the relationship between territorial disparities, firm productivity and its size, in order to understand possible weak points in the system and to identify possible solutions.

In the opinion, the author Ambra Redaelli states that a raise of the minimum wage could benefit the individuals, since they are the sole true driving force, the starting point and key point for progress, and for this reason, they must be stimulated in theirs career.

Attached the file of the article