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Market Segmentation and Effectiveness of Active Labour Policies

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  • Mauro Pinto
  • Domenico Sarno

Abstract

Over the last thirty years, Active Labour Market Policies (ALMP) have gained notable attention in the public debate on labour policies and the Welfare State. By reviewing the theoretical framework and the evolution of such policies at Eu and OECD level, this paper analyses the approach and the expenditure behaviour for ALMP followed in Italy since the Nineties. In doing so, it shows the main weaknesses of the Italian model, characterized by a high rate of labour market deregulation and low investment in active and passive social policies. Moreover, by stressing the segmentation of internal labour market and the poor labour demand in the «Italian Mezzogiorno», it sheds light on the asymmetric effects and the reduced efficacy of ALMP in Southern regions.

Suggested Citation

  • Mauro Pinto & Domenico Sarno, 2021. "Market Segmentation and Effectiveness of Active Labour Policies," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 2-3, pages 289-315.
    • Handle: RePEc:mul:jqyfkm:doi:10.1432/103190:y:2021:i:2-3:p:289-315
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