Italy: Selected Issues

This Selected Issues paper focuses on the paradox of Italy’s low fertility and low female labor force participation. Within-household allocation of housework tends to be relatively specialized in Italy, and with more limited burden-sharing in households with children. Social and cultural norms are frequently cited as one of the main reasons for Italy’s large time-use gender gaps. With ingrained norms, changing behaviors might be seen as very challenging. Yet Italy’s work-family outcomes have undergone significant shifts within a relatively short time span, most likely in response to large structural changes in the nature of employment contracts and the macroeconomic environment. In Italy, both fertility and female labor force participation lag behind peer countries. The number of births has fallen by a third over the last fifteen years, while female labor force participation remains very low. This uncommon combination points to the need to improve the compatibility of work and family life. Moreover, a large divide exists between Northern and Southern regions, with much lower female labor force participation but a similar fertility rate in the South, suggesting the presence of structural impediments, such as labor market rigidities and scarcity of childcare facilities.