Redistribution Through Public Employment: The Case of Italy

50 Pages Posted: 20 Mar 2000 Last revised: 10 Mar 2021

See all articles by Alberto F. Alesina

Alberto F. Alesina

Harvard University - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Stephan Danninger

International Monetary Fund (Research Department)

Massimo Rostagno

European Central Bank (ECB)

Multiple version iconThere are 2 versions of this paper

Date Written: October 1999

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.

Suggested Citation

Alesina, Alberto F. and Danninger, Stephan and Rostagno, Massimo, Redistribution Through Public Employment: The Case of Italy (October 1999). NBER Working Paper No. w7387, Available at SSRN: https://ssrn.com/abstract=193779

Alberto F. Alesina (Contact Author)

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