The average annual salary of an Italian worker is 15,000 euros less than that of a German worker, nearly 10,000 euros less than that of a French worker, and nearly half that of an American worker. This occurs at purchasing power parity, a statistical method that enables the elimination of disparities in the cost of living. Italian salaries have remained stagnant for decades, and the issue is even more acute during this period of high inflation, which results in generalized price increases that disproportionately affect individuals with fixed salaries. A lot has happened in the last two decades to explain why wages in Italy have never adjusted to the cost of living: the major issue is that the Italian economy has not developed significantly, preventing salaries from expanding correspondingly. The second issue, which is associated with growth, is that labor productivity has remained stagnant in recent decades. That is, the income generated by each worker over the past two decades has remained relatively consistent, despite the fact that it has increased in other large countries. As a result, Italian salaries remain lower than those of Germany, France, and the United States. Other issues include a lack of preparation for entrepreneurs and managers, worker training, and the extremely delayed acceptance of technology breakthroughs.
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