When austerity means inequality: the case of the Italian university compensation system in the period 2010–2020

The Gelmini reform implemented in Italy in 2010 was designed to ensure greater efficiency and effectiveness within the higher education (HE) sector. The reform was implemented in a climate of general austerity, which caused severe cuts in public funds for the university system. This paper documents the unintended consequences of the reform in terms of a dramatic reduction in the number of job positions, career speed, and remunerations for academic staff - which we describe as the 3Ls, i.e. Less staff, Later careers, Lower salaries. While the loss of wages cumulated is approximately equal to the average mortgage value for buying a house, the cost savings of the government are negligible, especially when compared to the adverse effects generated by the austerity reform. The profound inequality in the application, at the expense of younger and qualified faculties, mostly women, may lead to a long-lasting and irreversible consequences such as a loss of qualification and competitiveness for the whole HE system, as shown by the increasing phenomenon of brain drain.