A case of employment services in Italy

Abstract

Purpose– The purpose of this paper is to illustrate the recent evolution of the employment services system of a Northern Italian region (Lombardy), which was planned according to principles inspired by quasi-markets and horizontal subsidiarity theories, with a focus on its design and implementation challenges. It aims to provide practical and theoretical insights for the design of public services’ governance systems that similarly feature public-private competition and/or cooperation and users’ freedom of choice.Design/methodology/approach– The paper reviews and integrates previous empirical research analysing the programmes that are part of the recent evolution of Lombardy’s employment services system, in order to draw insights and lessons.Findings– The paper suggests areas where closer scrutiny and related intervention is warranted on the part of the institution in charge of the system’s design (in this case the regional administration), especially in terms of appropriate design of incentive mechanisms for partnership creation, and adequate consideration of the equity implications of the chosen solutions.Originality/value– The paper may be of interest to public officials aiming to implement systems with similar characteristics (public-private competition vs collaboration, users’ freedom of choice), in order to consider challenges and possible implications of their decisions during the planning phase. From a theoretical perspective, this case suggests that reliance on freedom and responsibility, both on the demand and the supply side, may not be adequate to reach the desired outcomes, and may produce negative equity implications. Focused partnerships may be more effective, but may experience similar shortcomings from the viewpoint of equity.