This paper describes the rules and the historical evolution of the Italian short-time work scheme system. Exploiting both sectoral and firm-level data, it analyses the actual use of such instruments across economic sectors in the period 2009-2019. Finally, it describes the system for financing short-time work schemes, and highlights some potential inefficiencies related to extraordinary wage supplementation (CIG).
The system is segmented and heterogeneous. The actual use of wage supplementation schemes is highly concentrated in a few sectors, and a substantial share of employees is excluded from using such instruments. The sectoral heterogeneity reflects the availability of alternative labor cost adjustment channels (e.g. temporary contracts) and firm size. The financing system features structural imbalances that may be corrected also by revising the mechanism used to compute the contributions to be paid.
