Redistribution Through Public Employment : The Case of Italy /

This paper examines the regional distribution of public employment in Italy and documents two sets of facts. The 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 sub...

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Bibliographic Details
Main Author: Danninger, Stephan
Other Authors: Alesina, Alberto, Rostagno, Massimo
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1999.
Series:IMF Working Papers; Working Paper ; No. 1999/177
Online Access:Full text available on IMF
Description
Summary:This paper examines the regional distribution of public employment in Italy and documents two sets of facts. The 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, with both the size of public employment and wage levels used as a redistributive device. The second set of facts concerns the negative effects of subsidized public employment on individuals' attitudes toward job search, education, and 'risk-taking' activities. We conclude that heavy reliance on public employment distorts incentives and discourages the development of market activities in the South.
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Physical Description:1 online resource (44 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students