@techreport{NBERw7387, title = "Redistribution Through Public Employment: The Case of Italy", author = "Alberto Alesina and Stephan Danninger and Massimo Rostagno", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "7387", year = "1999", month = "October", URL = "http://www.nber.org/papers/w7387", 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.}, }