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Labour Market and Decentralized Decision‐making: An Institutional Approach

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  • Adalgiso Amendola
  • Floro Ernesto Caroleo
  • Maria Rosaria Garofalo

Abstract

The persistent failure in the labour market is due to uncertainty and asymmetric information, and relies on a reconsideration of the bargaining process. This process is not generated by individual action but rather by the behaviour of social groups and institutions in which State intervention can immprove the efficiency in matching demand and supply. In this framework we will discuss the ways by which institutional decentralization can be implemented in a labour market characterized by deep regional differences and by long‐term unemployment persistence as in Italy. The main conclusion is that this policy option better fits the active labour policies. In fact the actual aim of such supply‐side policies is to reduce the regional and skill mismatches and therefore it needs a substantial involvement of local public agencies.

Suggested Citation

  • Adalgiso Amendola & Floro Ernesto Caroleo & Maria Rosaria Garofalo, 1997. "Labour Market and Decentralized Decision‐making: An Institutional Approach," LABOUR, CEIS, vol. 11(3), pages 497-516, November.
    • Handle: RePEc:bla:labour:v:11:y:1997:i:3:p:497-516
    DOI: 10.1111/1467-9914.00047
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    Cited by:

    1. Floro Ernesto Caroleo & Gianluigi Coppola, 2005. "The Impact of the Institutions on Regional Unemployment Disparities," CELPE Discussion Papers 98, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    2. Floro Ernesto Caroleo & Gianluigi Coppola, 2006. "Le cause dei divari regionali della disoccupazione in Europa," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2006(1).
    3. Floro Ernesto Caroleo, 2000. "Le politiche per l'occupazione in Europa: una tassonomia istituzionale," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2000(71).
    4. Carlo Altavilla & Floro Ernesto Caroleo, 2013. "Asymmetric Effects of National-based Active Labour Market Policies," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1482-1506, October.
    5. Altavilla, Carlo & Caroleo, Floro Ernesto, 2009. "Unintended Effects of National-based Active Labour Market Policies," IZA Discussion Papers 4045, Institute of Labor Economics (IZA).

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