Liberalising Employment Services at the Regional Level: Implementation Lessons from an Italian Case

Abstract

This paper explores the functioning of a public-private networked system for employment services’ provision implemented by Italy’s Lombardy region, and inspired by the principle of horizontal subsidiarity. Analysis of its implementation shows a considerable effort to apply the principles of quasi-markets and horizontal subsidiarity, and the related conditions for effectiveness and efficiency. Horizontal subsidiarity is meant to provide better responsiveness to users’ needs compared to other systems, and emphasises users’ freedom of choice. However, features of the analysed system such as the dominant market position of certain service providers, the enticement of users towards certain programmes, and weaknesses within the evaluation structure show that these same dimensions deserve closer scrutiny, together with medium-term examination of the overall system’s impact on equity.