Asymmetric Effects of National-based Active Labour Market Policies

Abstract

Altavilla C. and Caroleo F. E. Asymmetric effects of national-based active labour market policies, Regional Studies. Labour market policies settled at the national level imply a ‘one-size-fits-all’ labour market strategy. This strategy might not sufficiently take into account region-specific economic structures. Whether active labour market programmes might asymmetrically affect labour markets at the regional level is evaluated. The results for Italy suggest that while in the South employment is mainly driven by social and economic context variables, in the North the employment dynamics are significantly explained by policy interventions. Two policy implications are suggested. First, the success of active policies depends on the regional labour market conditions. Second, policy-makers should adjust labour policy strategy to regional economic structures.