Compulsory unemployment insurance in Italy

Abstract

The article outlines the essential features of the Italian system of unemployment insurance with special reference to the field of application; the conditions limiting the enjoyment of insurance benefits; the amount of the insurance benefits and extraordinary relief as compared to the average wages of the worker; the insufficiency of the existing provisions in view of the extent and chronic character of Italian mass unemployment; and the problems to be faced and the efforts now being made to improve the system. The deficiencies of the existing provisions are due not only to the scarce financial resources but also to the intrinsic nature of the insurance mechanism which arose to meet transitory forms of unemployment, and is therefore unsuited to face the problems raised by large-scale chronic unemployment. In any case, by the efforts at improvement now being made, the authorities are endeavouring to enlarge the field of insurance; to secure greater efficiency in management; to complete insurance benefits by special subsidies in the nature of relief in the areas most seriously effected. It is therefore likely that the quota of national income allocated for unemployment aid will increase in the near future.

JEL: E24, E31, J65