{"id":11832,"date":"2026-01-22T20:50:00","date_gmt":"2026-01-22T19:50:00","guid":{"rendered":"https:\/\/www.rivistaeco.com\/?p=11832"},"modified":"2026-01-22T20:50:00","modified_gmt":"2026-01-22T19:50:00","slug":"how-much-not-we-are-paid-for-our-work","status":"publish","type":"post","link":"https:\/\/www.rivistaeco.com\/en\/2026\/01\/22\/how-much-not-we-are-paid-for-our-work\/","title":{"rendered":"How Much (Not) We Are Paid for Our Work"},"content":{"rendered":"

How much of the value that a worker produces on average for their company ends up in their salary? In Italy, less than half. Most of the value added generated by each employee goes to firms, a possible explanation for why wages are low in our country. In Europe, however, the truly exceptional case in this respect is Ireland, home to several high-tech multinationals.<\/em><\/p>\n

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The chart shows the difference between the value of what a worker produces on average for the company they work for\u2014the value added per employee\u2014and the salary they receive. To facilitate comparisons across countries, this difference is expressed as a proportion of the average gross wage, before taxes paid by the worker. In other words, the chart indicates how much workers are paid less than the value they generate (the so-called wage markdown) and therefore reflects firms\u2019 power in the labor market.<\/p>\n

In 2024, Italy recorded the third-highest markdown in Europe, at 127%. In absolute terms, out of a value added per employee of \u20ac74,000, \u20ac41,000 remained with firms (56%), while the remaining \u20ac33,000 (44%) went to workers in the form of wages. In short, an Italian worker receives less than half of the economic value they help generate. This may help explain why wages are so low in Italy: it may depend, at least in part, on the high market power of firms, which coordinate with one another to pay their employees less.<\/p>\n

A striking case is Ireland, where the ratio reaches 250%: firms retain an amount equal to two and a half times workers\u2019 wages. This is an anomaly in the European landscape and can be explained by the presence of many technology multinationals attracted by favorable tax conditions. In their case, it is difficult to determine where value added is actually generated, and it is likely that not all of it is produced in Ireland; this explains the high value added per employee. The fact remains that average Irish wages are not low compared with the rest of Europe.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

How much of the value that a worker produces on average for their company ends up in their salary? In Italy, less than half. 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