Redistribution Through Public Employment: The Case of Italy
IMF Working Papers, December 1, 1999
Source details
- Canonical URL
- Redistribution Through Public Employment: The Case of Italy
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Bibliographic details
- Authors: Stephan Danninger, Alberto Alesina, Massimo V. Rostagno
- Published: December 1, 1999
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451858853.001
Overview and Research Question
- Authors: Stephan Danninger, Alberto Alesina, Massimo V. Rostagno
- Date: December 1, 1999
- Research focus: Examination of the regional distribution of public employment in Italy and its redistributive role between the North and the South.
Key Findings
- Two main sets of documented facts:
- Public employment functions as a subsidy from the North to the less wealthy South.
- Subsidized public employment has negative effects on individuals’ attitudes toward job search, education, and “risk-taking” activities.
- Quantitative finding: the authors calculate that about half of the wage bill in the South of Italy can be identified as a subsidy.
- Mechanisms of redistribution identified:
- The size of public employment used as a redistributive device.
- Wage levels used as a redistributive device.
- Behavioral consequences: heavy reliance on public employment distorts incentives and discourages the development of market activities in the South.
Subjects and Keywords
- Subject areas: Economic sectors; Employment; Labor; Public employment; Public sector; Wages.
- Keywords (as listed): benchmark wage, bill of the South, cost of living, dependent variable, Employment, entrepreneurial activity, price level, private sector, Public Employment, Public Policy and Economic Behavior of Agents, Public sector, public sector wage policy, Redistribution of Income, wage bill, wage comparison, wage premium, wage rate, wage regression, wage variation, Wages, work experience, WP.
Content in this bundle
- Redistribution Through Public Employment: The Case of Italy - WP/99/177