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Redistribution Through Public Employment: The Case of Italy

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  • Albert Alesina

    (International Monetary Fund)

  • Stephan Danninger

    (International Monetary Fund)

  • Massimo Rostagno

    (International Monetary Fund)

Abstract

This paper examines the regional distribution of public employment in Italy. It documents two facts. The first is that public employment is used as a subsidy from the North to the less wealthy South. 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 fact concerns the effects of subsidized public employment on individuals' attitudes toward job search, education, "risk taking" activities, and so on. Public employment discourages the development of market activities in the South. Copyright 2002, International Monetary Fund

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal IMF Staff Papers.

Volume (Year): 48 (2001)
Issue (Month): 3 ()
Pages: 2

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Handle: RePEc:pal:imfstp:v:48:y:2002:i:3:p:2

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  1. Marianne Bertrand & Erzo F.P. Luttmer & Sendhil Mullainathan, 1998. "Network Effects and Welfare Cultures," NBER Working Papers 6832, National Bureau of Economic Research, Inc.
  2. Ehrenberg, Ronald G. & Schwarz, Joshua L., 1987. "Public-sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 22, pages 1219-1260 Elsevier.
  3. Gundlach, Erich & Wossmann, Ludger & Gmelin, Jens, 2001. "The Decline of Schooling Productivity in OECD Countries," Economic Journal, Royal Economic Society, vol. 111(471), pages C135-47, May.
  4. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
  5. repec:fth:prinin:405 is not listed on IDEAS
  6. Alesina, Alberto & Baqir, Reza & Easterly, William, 2000. "Redistributive Public Employment," Journal of Urban Economics, Elsevier, vol. 48(2), pages 219-241, September.
  7. Coate, Stephen & Morris, Stephen, 1995. "On the Form of Transfers in Special Interests," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1210-35, December.
  8. Erzo Luttmer, . "Network Effects and Welfare Cultures," University of Chicago - Population Research Center 98-13, Chicago - Population Research Center.
  9. Borjas, George J., 1986. "The earnings of state government employees in the United States," Journal of Urban Economics, Elsevier, vol. 19(2), pages 156-173, March.
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