Keywords: Human Capital, Youth Labour Market, Unemployment, Overeducation, Sicily.
The paper analyses the imbalances of the Sicilian labour market by comparing
it to that of the regions of Northern Italy. The systematic waste of the human capital resources
provided by the highly educated youths, both in terms of unemployment and of overducation,
is mainly explained by structural and institutional characteristics that act on the demand
side: the regional economy is not able to create employment despite the predominance
of the service sector; the employment structure is polarized and segmented both horizontally
and vertically by profession; the firms have size limits and appear to be weak from the point
of view of both organization and competition; the public rules are inadequate in terms
of policies to foster local development and public employment. The results of our analysis
contribute to the overcoming of the 'supply strabismus' of employment policies which derives
from the overestimation of the roles of flexibility and professional training.