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The Italian Social Protection System

The Poverty of Welfare

By: Ms.Francesca Utili,Mr.Massimo V. Rostagno

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The Italian Social Protection System

The Poverty of Welfare

By: Ms.Francesca Utili,Mr.Massimo V. Rostagno

Italy’s system of social protection has come under criticism for being fragmented and excessively skewed toward pensioners and “insiders.” After setting up a consolidated presentation of the social security accounts, this paper provides an empirical assessment of the effectiveness of the welfare system, relying on a survey of households’ incomes and wealth. It concludes that, owing to ill-designed targeting mechanisms, less than a quarter of total spending on the welfare instruments under review accrues to families whose own resources fall short of the poverty line. The paper then proposes a new means-testing formula.

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Page Count

51

Publisher

International Monetary Fund

Published Date

ISBN 10

1451849567

ISBN 13

9781451849561

Redistribution Through Public Employment

The Case of Italy

By: Mr.Alberto Alesina,Mr.Massimo V. Rostagno,Mr.Stephan Danninger

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Redistribution Through Public Employment

The Case of Italy

By: Mr.Alberto Alesina,Mr.Massimo V. Rostagno,Mr.Stephan Danninger

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 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.

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Page Count

45

Publisher

International Monetary Fund

Published Date

ISBN 10

145185885X

ISBN 13

9781451858853

Book's by Massimo V. Rostagno

The Italian Social Protection System

The Italian Social Protection System

Redistribution Through Public Employment

Redistribution Through Public Employment

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