Redistribution Through Public Employment - The Case of Italy |
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Author:
| Danninger, Stephan Alesina, Alberto Rostagno, Massimo V. |
Series title: | IMF Working Papers |
ISBN: | 978-1-4519-0421-5 |
Publication Date: | Dec 1999 |
Publisher: | International Monetary Fund
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Book Format: | Ebook |
List Price: | Contact Supplier contact
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Book Description:
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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...
More DescriptionThis 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.