Asymmetric Effects of National-based Active Labour Market Policies

Carlo Altavilla and Floro Caroleo ()

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: Labour market policies settled at national level imply a “one-size-fits-all” labour market strategy. This strategy might not sufficiently take into account region-specific economic structures. We employ a panel factor-augmented vector autoregression (FAVAR) to evaluate whether active labour market programmes (ALMPs) might asymmetrically affect labour markets at regional level in a data-rich environment. The paper focuses on Italian regions. Our results suggest that while in the South employment is mainly driven by social and economic context variables, in the North the employment dynamics is significantly explained by policy interventions. Finally, we suggest two main policy implications. First, the success of active policies depends on the regional labour market conditions. Second, policymakers should adjust labour policy strategy to the regional economic structure

Keywords: Active Labour Market Policies; FAVAR. (search for similar items in EconPapers)
JEL-codes: C33 J64 (search for similar items in EconPapers)
Date: 2011-10-25
New Economics Papers: this item is included in nep-geo, nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Regional Studies, 2013, 47(9), 1482-150

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Journal Article: Asymmetric Effects of National-based Active Labour Market Policies (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:293

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