ABSTRACT
This chapter provides a brief presentation of the general features of the economy and its growth pattern, emphasising its heavy dependence on the manufacturing sector and on what we call the "life-style system". It analyses the short-time working institution of Cassa Integrazione Guadagni and the wage-setting system implemented through the tripartite agreement of July 23, 1993. During the decade, the Italian labour market and production system have had to face a profound structural change in competitive conditions, induced by trade globalisation, new technologies, and the strong acceleration in economic integration at the European level. Industrial districts are defined as aggregations of municipalities, each characterised by two distinguishing features: a strong homogeneity of local labour markets, and a strong specialisation in manufacturing activities. In some manufacturing sectors, namely textile industry, clothing and leather, Italy shows a noticeable degree of specialisation, with a relatively more consistent presence of firms and persons employed.
