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The quasi-market of employment services in Italy

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  • Pastore, Francesco

Abstract

This paper aims to study pros and cons of the first experiment of quasi-market in the provision of employment services in Italy: the Lombardy DUL (Dote Unica Lavoro). The program, which has inspired the 2015 national reform within the Jobs Act and lines towards the recent experience of several Anglo-Saxon countries, has revitalized the sector by providing important job opportunities to jobless workers. We find the typical problems of quasi-markets (lion’s share of private organizations; cherry picking; gaming and asymmetric information). However, different expedients were devised in the program to minimize these shortcomings. The empirical analysis suggest that such phenomena are at a physiological level. Analysis of the determinants of completing successfully the program provides non-trivial results as to, among others, the role of organizations of different ownership type and of the type of services provided. On these we base our policy advice.

Suggested Citation

  • Pastore, Francesco, 2020. "The quasi-market of employment services in Italy," Journal of Policy Modeling, Elsevier, vol. 42(6), pages 1248-1269.
    • Handle: RePEc:eee:jpolmo:v:42:y:2020:i:6:p:1248-1269
    DOI: 10.1016/j.jpolmod.2019.06.008
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    1. Francesco Pastore, 2015. "The Youth Experience Gap," SpringerBriefs in Economics, Springer, edition 127, number 978-3-319-10196-5, October.
    2. Pastore, Francesco, 2017. "Why so slow? The School-to-Work Transition in Italy," GLO Discussion Paper Series 65, Global Labor Organization (GLO).
    3. Francesco Pastore, 2015. "The European Youth Guarantee: labor market context, conditions and opportunities in Italy," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-22, December.
    4. Giuseppe Lucio Gaeta & Giuseppe Lubrano Lavadera & Francesco Pastore, 2016. "Much ado about nothing? The wage penalty of holding a Ph.D. degree but not a Ph.D. job position," Discussion Papers 7_2016, CRISEI, University of Naples "Parthenope", Italy.
    5. Le Grand, Julian, 1991. "Quasi-markets and Social Policy," Economic Journal, Royal Economic Society, vol. 101(408), pages 1256-1267, September.
    6. Floro Ernesto Caroleo & Francesco Pastore, 2018. "Overeducation at a Glance. Determinants and Wage Effects of the Educational Mismatch Based on AlmaLaurea Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(3), pages 999-1032, June.
    7. Annicchiarico, Barbara & Di Dio, Fabio & Felici, Francesco, 2013. "Structural reforms and the potential effects on the Italian economy," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 88-109.
    8. Giuseppe Lucio Gaeta & Giuseppe Lubrano Lavadera & Francesco Pastore, 2017. "Much Ado about Nothing? The Wage Penalty of Holding a PhD Degree but Not a PhD Job Position☆," Research in Labor Economics, in: Skill Mismatch in Labor Markets, volume 45, pages 243-277, Emerald Group Publishing Limited.
    9. Mauro, Luciano, 2004. "The macroeconomics of Italy: a regional perspective," Journal of Policy Modeling, Elsevier, vol. 26(8-9), pages 927-944, December.
    10. Francesco Pastore, 2009. "School-to-Work Transitions in Mongolia," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(2), pages 245-264, December.
    11. Ruiz Estrada, Mario Arturo & Park, Donghyun, 2018. "The past, present and future of policy modeling," Journal of Policy Modeling, Elsevier, vol. 40(1), pages 1-15.
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    Cited by:

    1. Francesco Pastore & Marco Pompili, 2020. "Assessing the Impact of Off-the-Job and On-the-Job Training on Employment Outcomes: A Counterfactual Evaluation of the PIPOL Program," Evaluation Review, , vol. 44(2-3), pages 145-184, April.
    2. Jain, Geetika & Paul, Justin & Shrivastava, Archana, 2021. "Hyper-personalization, co-creation, digital clienteling and transformation," Journal of Business Research, Elsevier, vol. 124(C), pages 12-23.
    3. Ayaita, Adam & Grund, Christian & Pütz, Lisa, 2021. "Job Placement via Private vs. Public Employment Agencies: Investigating Selection Effects and Job Match Quality in Germany," IZA Discussion Papers 14024, Institute of Labor Economics (IZA).
    4. Rammal, Hussain G. & Rose, Elizabeth L. & Ghauri, Pervez N. & Ørberg Jensen, Peter D. & Kipping, Matthias & Petersen, Bent & Scerri, Moira, 2022. "Economic nationalism and internationalization of services: Review and research agenda," Journal of World Business, Elsevier, vol. 57(3).
    5. François Salanié & Vera Zaporozhets, 2022. "Water allocation, crop choice, and priority services," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(1), pages 140-158, February.
    6. Emmert, Martin & Schindler, Anja & Drach, Cordula & Sander, Uwe & Patzelt, Christiane & Stahmeyer, Jona & Kühnel, Elias & Lauerer, Michael & Nagel, Eckhard & Frömke, Cornelia & Schöffski, Oliver & Hep, 2022. "The use intention of hospital report cards among patients in the presence or absence of patient-reported outcomes," Health Policy, Elsevier, vol. 126(6), pages 541-548.

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    More about this item

    Keywords

    Public employment services; Quasi-markets; Cherry-picking; Gaming; Lombardy region; Jobs Act;
    All these keywords.

    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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