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Redistribution Through Public Employment: The Case of Italy

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Author Info
Alberto Alesina
Stephan Danninger
Massimo Rostagno

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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.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7387.

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Date of creation: Oct 1999
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Handle: RePEc:nbr:nberwo:7387

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  1. Erich Gundlach & Ludger Wössmann & Jens Gmelin, 1999. "The Decline of Schooling Productivity in OECD Countries," Kiel Working Papers 926, Kiel Institute for the World Economy. [Downloadable!]
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  2. Sendhil Mullainathan & Marianne Bertrand & Erzo F.P. Luttmer, 1998. "Network Effects and Welfare Cultures," Working papers 98-21, Massachusetts Institute of Technology (MIT), Department of Economics.
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  3. 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. [Downloadable!] (restricted)
  4. Alberto Alesina & Reza Baqir & William Easterly, 1998. "Redistributive Public Employment," NBER Working Papers 6746, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. 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. [Downloadable!] (restricted)
  6. Ronald G. Ehrenberg & Joshua L. Schwarz, 1987. "Public Sector Labor Markets," NBER Working Papers 1179, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Erzo Luttmer, . "Network Effects and Welfare Cultures," University of Chicago - Population Research Center 98-13, Chicago - Population Research Center.
  8. 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. [Downloadable!] (restricted)
  9. repec:fth:prinin:405 is not listed on IDEAS
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