Italy and jobs - Term Paper Example

The hypothesis for this paper is distribution of public employment is distributed based on region and employment types. This paper seeks to explain how job allocations are done in Italy plus, job search and mobility within Italy in relation to job. The Italian welfare state system does not offer job security for the temporarily unemployed but highly favors retirees. As a result, temporary unemployment subsidy from the government offers incentives for job seekers (Picchio, 2008 pp.1). Conversely, permanent employment would not offer such incentives since public employment remains a lifelong endeavor and could hardly be lost.

The use or misuse of disability pension in the South could lead to compensation on permanent unemployment. The South also remains over dependent on public employment that offers permanent job welfare. This substantial reliance on public employment creates a sequence of attitudes and educational choices towards risks that could support tendencies to escape from private employment sectors (Picchio, 2008 pp.1). Informal networks, which incorporate social ties between currently, employed and job seekers, letters of reference and intermediation have affected the Italian labor market (Boca et al., 2004 pp.7).

First, informal networks have become more successful in relation to job seekers’ placements than any other job search strategies in Italy. However, these networks work effectively for small firms that offer low wages regardless of the skills since they remain less governed by governmental hiring regulations. Most negative impacts on earnings arising from informal networks could be due to links developed by informal networks especially with small firms and their contracts (Picchio, 2006 pp. 4). There exists a negative relationship between job search by informal networks and earnings (Picchio, 2008 pp.1). Hence, people with