Redistribution Through Public Employment: The Case of Italy

Alberto Alesina, Stephan Danninger () and Massimo Rostagno ()

No 7387, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines the regional distribution of public employment in Italy. It documents two sets of facts. This first is the use of public employment as a subsidy from the North to the less wealthy South. We calculate that about half of the wage bill in the South of Italy can be identified as a subsidy. Both the size of public employment and the level of wages are used as a redistributive device. The second set of facts concerns the effects of a subsidized public employment on individuals' attitudes toward job search, education, 'risk taking' activities etc. Public employment discourages the development of market activities in the South.

Date: 1999-10
New Economics Papers: this item is included in nep-lab, nep-pbe and nep-pub
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Published as Albert Alesina & Stephan Danninger & Massimo Rostagno, 2001. "Redistribution Through Public Employment: The Case of Italy," IMF Staff Papers, Palgrave Macmillan Journals, vol. 48(3), pages 2.

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Related works:
Journal Article: Redistribution Through Public Employment: The Case of Italy (2001)
Working Paper: Redistribution Through Public Employment: The Case of Italy (1999)
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