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New welfare policy response to address low fertility levels

04 October 2023 | Policy Analysis

Context and impetus for the policy measure

Italy has one of the lowest fertility rates in the world: in 2021 it was 1.3 births per woman (World Bank). This is mainly due to the difficulties in reconciling work and family life. Indeed, female employment rate decreases as the number of children increases. The fertility rate of immigrants is higher (+ 0.6) but also has been decreasing over time. 

Several short-term policies (e.g., babysitting bonus, third child bonus, etc.) have been implemented since 2010 to support motherhood and parenting in Italy, but all showed a low efficacy as births continued to drop over time. 

Existing social welfare policies to help families

In 2021 (D. Lgs. 230/2021), Italy introduced the Single and Universal Allowance for dependent children (“Assegno Unico Universale per figli a carico”), which simplified the framework of welfare benefits to support families. The allowance is universal and progressive: it can be obtained for each child irrespective of parental employment status or family income, but the amount varies according to income level and the child’s age (from €50 to €175 per month for children under 18, and from €25 to €85 for children aged 18–21). The amount is also higher for disabled children and single mothers. 

In 2022 (D. Lgs. 105/2022), a compulsory paternity leave of 10 days was introduced with the aim of pursuing a more equitable distribution of childcare responsibilities between men and women and fostering gender equality in family and work environments. In detail, fathers who are private and public employees can benefit from such leave, even in the case of adoption, and during the maternity leave of the working mother. Further changes were introduced in relation to non-compulsory parental leave (with a remuneration equal to 30% of the salary): it can now be used until the child reaches the age of 12 (instead of 6) and for a maximum period of 9 months (instead of 6).

Content of the policy measure and implementation

Italy’s Recovery and Resilience Plan (PNRR) has allocated 4.6 billion to create 264 470 new preschool places (for children aged 0–3 years), corresponding to a 76% increase of current places, by the end of 2025. Indeed, only one-third (33.4%) of children aged below 3 attend preschool in Italy, compared to 36.2% across the EU, and this share in directly correlated with family income and parental employment status. Therefore, this policy aims to facilitate the attendance of children from low-income families and promote female participation in the labour market.

Authors
  • Michela Meregaglia
  • Antonio Giulio de Belvis
Country

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