Analyzing Youth Unemployment and Brain Drain in Southern Italy

This paper examines the issue of the European Brain Drain in Italy while highlighting youth unemployment rates. Looking into these prominent issues that have been plaguing Italy especially in the South for years, this paper uses the framework provided by “Everything in its Place” by Audretsch (2015). Young students have been migrating to northern Italy or even out of the country to receive a university level education and to find a job. When they are faced with the current labor market situation, they move out of Italy. This has been occurring at a rapid rate for many years now. The main factors that are causing this problem are stagnant foreign direct investment inflows, corruption in the southern Italian government, short term labor contracts, and skill mismatch. The government has made failed attempts at solving this issue and this is partly because it is a very immense and complex problem. The paper has developed several ideas that could lead Italy toward the direction of progress. These policy change proposals include first enhancing Italy’s startup culture by investing in entrepreneurial areas, ultimately increasing foreign direct investment inflows. Increasing law enforcement to end corruption is the next step to solving the issue at hand. Finally, enhancing education and matching skills to occupations should send Italy on the fast track to slowing their youth unemployment and Brain Drain epidemic.