Employment is the crux

Publication_year: 
1998
ACLI; ARCI; Mani Tese; Movimondo

In Italy, measures against poverty generally appear as policies addressing work pathologies such as unemployment, accidents, and diseases, work being the crux of citizen rights.

Social citizenship and the battle against social exclusion and marginalisation take different shapes in the different European countries, depending on their social, political and cultural history. In Italy, for instance, a ‘minimum allowance’, which would be similar to the English ‘supplementary benefit’, the French ‘revenue minimum d’inclusion’ or the German ‘bundessozialhilfe’, is still lacking.

Social welfare and security

It is not by chance that one of the most prominent forms of the battle against poverty is that of income support (civil invalidity pension, disability benefit, home assistance benefit, social pension).

In 1995, global social protection expenses totalled 403 thousand billion Lire, that is 28.8% of Gross Domestic Product (GDP). Security and welfare expenses were 309 thousand billion Lire, 17.5% of GDP. Pension expenses were the dominant component (208 thousand billion Lire or 11.8% of GDP in 1995). These showed an upward trend, notwithstanding the reforms that took place in 1992. 90% of pension expenses are constituted by old age pensions. Social welfare expenses amount to 62.9 thousand billion Lire, 3,5% of GDP. From 1989, these expenditures shrank. Social welfare expenses include supplements to minimum pensions as well as family allowances.

To better understand the character of policy against poverty, an analysis of the composition of welfare expenses is useful. (See Table 1)

The following points become evident:

  1. Monetary distribution plays a far greater role than services supply.
  2. Funds go to bodies and institutions whose aims and functions overlap and are therefore not clear.
  3. Institutions have a strict sectorial character that fragments citizens into a myriad of categories, but ignores factors such as age, sex and actual living conditions.
  4. Welfare programmes are usually made on the basis of a confused notion of invalidity: a generic concept of "inability to work" prevails, while new forms of exclusion such as AIDS, alcoholism, and homelessness are underrated, as are the new demands and risks that arise from current social transformations (increases in female employment and in the number of one-parent families).
  5. Welfare interventions are fragmented among different institutional bodies, both at central and decentralised levels such as state, government departments, regions, provinces and municipalities.
  6. Financing instruments are unclear: contributions are still predominant, while fiscal instruments are residual.

Table 1

Welfare espenses composition
 

1985

%

1990

%

1992

%

1995

%

Welfare interventions

44016

100.0

56699

100.0

59136

100.0

62868

100.0

Gross Domestic Product percentage

5.4

 

4.3

 

3.9

 

3.5

 
Supplement to low incomes

35365

80.3

39451

69.6

39678

70.2

38979

62.0

Suppl. to reach the minimum pension

27362

62.2

27927

49.3

29512

49.9

29163

46.4

Non contributory pensions

2099

4.8

3190

5.6

3522

5.6

3482

5.5

Family allowances

5269

12.0

7724

13.6

5979

13.6

5483

8.7

Other allowances and benefits

635

1.4

610

1.1

665

1.1

851

1.4

Protection of disabled

6263

14.2

13494

23.8

15081

23.8

18892

30.1

Pensions to invalids for labour accidents

3734

8.5

9724

17.2

10872

17.2

14481

23.0

- of which                
Home assistance allowance

1409

 

4877

 

5795

 

7737

 
Pensions to blind and deaf people

694

1.6

1256

2.2

1436

2.2

1724

2.7

War widows’ pensions

1835

4.2

2514

4.4

2773

4.4

2687

4.3

Specific Interventions

2388

5.4

3754

6.6

4377

6.6

4997

7.9

National assistance

2388

5.4

3754

6.6

4377

6.6

4997

7.9

Worker’s policy

The battle against poverty also takes the form of employment-oriented policy, which acts in two directions, to ensure full-time employment, and to ensure allowances to the unemployed. The standard (which is still predominant) for work policy is a full-time permanent job "Cassa Integrazione" provides ordinary and special provisions for laid-off workers - Ordinary "Cassa Integrazione" benefits may be applied in a temporary crisis for a maximum of one year, and are equivalent to 80% of the latest salary, paid by INPS. Extraordinary CI benefits concern enterprises employing more than 15 people. They amount to 80% of the latest salary and durations range from 24 to 36 and also 48 months.

Industrial management

In Italy there are two different ways to deal with unemployment: payment of ordinary benefits and special benefits. (See Table 2)

The strategy for the fight against poverty is obvious from the current work policies. The most conspicuous roles are played by contracts for training and employment, socially valuable jobs, part-time jobs, incentives for entrepreneurship, and interventions in support of groups at risk also through European programmes such as Now, Horizon, and Youthstart.

However, the most relevant actions still derive from a logic of passive defense. They prioritise the defense of permanent jobs and of non-traumatic dismissal of excess workers (through early retirement, etc). Given the present instability and uncertainty in our economy, too much of welfare security is still depends on work. This distortion is evident in the confusion between "welfare security" and "social welfare" that characterises income protection in Italy.

Especially during the last years, the number of families living in poverty has increased. (See Table 3)

Housing

The problems that concur to create poverty are many: apart from employment instability and uncertainty, there is also the issue of accommodation. In Italy, over 70% of families own their own houses. At the same time, housing prices have increased faster than inflation and wages. From 1985 to 1991, the price of a residence increased by 80%, while medium contract wages increased by 38%. In the sixties, two or three years of the median household income was enough to buy a house; in 1994, five or six years was necessary. Nowadays, it is far more difficult for young people to become homeowners; it is also more difficult to change lodgings. Housing takes 18% of the income of poorer families (with monthly incomes below one million) and 7.3% of richer family incomes (monthly incomes above three million). Economic poverty is thus more common among those who pay rent than those who own their homes.

Table 2

WORKFORCE

Population (divided by condition), sectors of business of employed

people and their sex (a)

Average for the four surveys (data expressed in thousands)

(b)Employed In search of employment

Years                   Non labour forces Total of population
  Agri-

culture

Indus

try

Other sectors Total Un

employed

In search of 1st job Other people in search of employment Total Total    

Males

1986

1,442

5,194

7,317

13,953

289

617

209

1,115

15,068

12,471

27,538

1987

1,413

5,111

7,322

13,485

313

665

251

1,228

15,074

12,512

27,586

1988

1,345

5,155

7,489

13,990

305

687

248

1,240

15,230

12,406

27,635

1989

1,261

5,103

7,487

13,851

286

676

257

1,220

15,071

12,598

27,669

1990 (c)

1,197

5,233

7,586

14,015

264

667

246

1,177

15,192

12,517

27,709

1991

1,165

5,259

7,678

14,102

256

645

241

1,142

15,244

12,535

27,779

1992

1,105

5,214

7,626

13,945

297

692

238

1,226

15,171

12,651

27,822

1993 (d)

1,045

5,145

7,141

13,332

490

518

90

1,098

14,430

12,979

27,409

1994

999

5,022

7,036

13,057

593

552

105

1,250

14,307

13,166

27,143

1995

956

4,934

7,043

12,933

597

599

115

1,311

14,244

13,315

27,559

1996

915

4,912

7,073

12,901

594

630

112

1,335

14,236

13,389

27,625

Females

1986

800

1,627

4,477

6,903

212

679

605

1,496

8,399

20,638

29,038

1987

756

1,605

4,630

6,991

234

689

681

1,604

8,595

20,483

29,077

1988

713

1,633

4,767

7,133

231

725

689

1,645

8,758

20,369

29,127

1989

685

1,650

4,818

7,153

221

728

697

1,646

8,799

20,369

29,168

1990 (c)

666

1,707

5,008

7,381

219

690

665

1,574

8,955

20,289

29,244

1991

658

1,656

5,175

7,490

213

640

657

1,511

9,000

20,335

29,335

1992

644

1,636

5,233

7,514

254

678

640

1,573

9,086

20,279

29,365

1993 (d)

623

1,579

4,932

7,135

354

487

395

1,236

8,371

20,627

28,997

1994

575

1,565

4,922

7,063

390

496

424

1,310

8,373

20,693

29,066

1995

534

1,560

4,982

7,077

408

551

455

1,414

8,490

20,591

29,081

1996

487

1,563

5,137

7,187

417

574

436

1,428

8,615

20,506

29,121

Males and Females

1986

2,241

6,821

11,794

20,856

501

1,256

814

2,611

23,467

33,109

56,576

1987

2,169

6,716

11,952

20,836

547

1,354

932

2,832

23,669

32,995

56,664

1988

2,058

6,788

12,256

21,103

537

1,412

937

2,885

23,998

32,775

56,763

1989

1,946

6,753

12,305

21,004

507

1,405

954

2,865

23,870

32,967

56,836

1990 (c)

1,863

6,940

12,593

21,396

483

1,357

912

2,571

24,147

32,806

56,953

1991

1,823

6,916

12,853

21,592

469

1,285

898

2,653

24,245

32,870

57,114

1992

1,749

6,851

12,859

21,459

551

1,370

878

2,799

24,257

32,930

57,187

1993 (d)

1,669

6,725

12,073

20,466

845

1,005

485

2,334

22,801

33,605

56,406

1994

1,574

6,587

11,959

20,119

983

1,048

529

2,561

22,680

33,859

56,540

1995

1,490

6,494

12,025

20,010

1,005

1,150

570

2,725

22,734

33,906

56,641

1996

1,402

6,475

12,211

20,088

1,011

1,204

548

2,763

22,851

33,895

56,746

(a) As for definitions of aggregations and changes made to the survey see introductory note– (b) In using the workforce series, please take into account the fact that the data relative to the 1990 average exist in two versions, owing to the use of two different systems for universe (c) 1990 average coefficients of expansion to universe. Such coefficients were adopted as from 1991. – (d) data from 1993 on have been revised adjousting the weighting procedures – set for calculating the esteems that derive ffrom the survey – to age and sex structure of Italian population as resulted from October 1991 census.

Source: ISTAT 1997

Public Health

In this field also, measures taken by recent governments (from 1992 on) that were intended to reduce costs and separate social welfare and public health, may favour new a form of exclusion. This new form of marginalisation acts through two mechanisms: off-loading of complex cases, and difficulty of access for certain groups. Because of the separation of duties, various institutions in the sector reciprocally off-load the responsibility for problems and people whose needs are complex and not separable (long-term, chronic and mental patients). This separation of duties and the lack of "guide-posts" also make access difficult for people who do not possess the necessary information and skills (eg, resident immigrants). The relationship between poverty and public health becomes very serious if we also take into account factors such as mortality and morbidity. (See Tables 5 and 6)

Table 3

Incidence of poverty in Italy, 1993 and 1994 (absolute values in thousands and percentage values)

 

1993

1994

 

North

Centre

South

Italy

North

Centre

South

Italy

Poor families 525 315 1,392 2,232 419 262 1,357 2,038
Resident families 9,771 4,047 6,945 20,763 9,537 3,881 6,602 20,020
% of poor families of the total resident families 5.4 7.8 20.0 10.7 4.4 6.8 20.6 10.2
                 
Poor people 1,275 836 4,351 6,462 1,122 726 4,610 6,458
Resident people 25,204 10,876 20,882 56,961 25,096 10,481 20,434 56,371
% of poors of the total resident people 5.1 7.7 20.8 11.3 4.5 6.7 22.6 11.5
                 
Territorial distribution                
Poor families 23.5 14.1 62.4 100.0 20.6 12.9 66.6 100.0
Resident families 47.1 19.5 33.4 100.0 47.6 19.4 33.0 100.0
Poor people 19.7 12.9 67.3 100.0 17.4 11.2 71.4 100.0
Resident people 44.2 19.1 36.7 100.0 44.5 19.2 36.2 100.0

Source: data processing by ISTAT Family expenditure survey 1993 and Family expenditure survey 1994.

Education and professional training

Lack of education and social exclusion are strongly connected. The right to education is a fundamental citizens’ right, but in Italy it is only partially universal. The school system’s productivity is still very low. Out of 1000 teenagers that begin middle school, only 177 go to university. In the transition from middle to high school the rates of failures and drop-outs are extremely high. (See Tables 4 and 7)

10% of professional training activities are carried out by regional governments; together with the percentage carried out by provincial bodies these reach 25% of the whole public intervention. About 70% of such activities depend on training bodies and institutions that operate on the basis of agreements with single regions. Private enterprises carry out 73% of basic education and 68% of second-level training. The professional training sector has proven unable to make the necessary transformations to improve its effectiveness and its connection with the labour market.

Table 4

Percentage of wastage during the first 2 years of course divided by kinds of school (s.y. 1992-1993).

Kind of education

Males

Females

Total

Classic school

11.4

10.6r

10.9

Scientific school

11.2

9.9

10.6

Teaching school

17.7

22.9

22.6

Technical school

25.7

16.2

22.1

Vocational school

42.4

35.1

39.1

Source: Isfol [1994]

Table 5

Mortality due to every cause in Italy in 1981/1982: some data (mortality in all the population = 100)

Source: Costa e Faggiano [1994]

Table 6

Years of life lost for each 10,000 potential years of life concerning people aged between 18 and 64 years(standard), resident in Turin in the years 1981-1989, according to social indicators and some selected causes of death.

 

Cancer

Cirrhosis

Accidental death

Suicides

homicides

Education        
University degree High school

35.4

3.4

6.9

4.1

Medium school

44.3

6.4

8.8

4.2

Primary school

46.7

9.8

12.0

4.1

Literate/illiterated people

47.1

15.1

20.0

7.9

         
Home        
Owned

37.5

4.6

8.0

3.7

Rented

49.3

9.0

9.2

4.3

         
Profession        
Entrepreneurs/Managers

32.0

2.7

5.9

2.1

Employees

38.2

4.2

5.5

2.9

Self-employed

39.2

4.2

8.6

6.5

Labourers

42.1

7.5

8.6

3.8

Unemployed

72.0

20.5

18.8

12.7

Source: Costa e Faggiano [1994]

Table 7

"Census" Regional list on education (concise index)

 

1985

 

1992

North-East

234.47

Center

234.80

Center

234.27

North-East

232.38

North-West

228.45

North-West

224.41

South and Isles

183.66

South and Isles

188.60

       
Italy

211.02

Italy

210.87

Source: Processing of data by ISTAT [Census 1993]