Premium
Labour Market and Decentralized Decision‐making: An Institutional Approach
Author(s) -
Amendola Adalgiso,
Caroleo Floro Ernesto,
Garofalo Maria Rosaria
Publication year - 1997
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/1467-9914.00047
Subject(s) - decentralization , unemployment , economics , active labour market policies , matching (statistics) , intervention (counseling) , labour economics , process (computing) , market failure , microeconomics , market economy , macroeconomics , psychology , statistics , mathematics , psychiatry , computer science , operating system
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.