Abstract

The carrying out of PES reform, activated by d.lgs. 469 in 1997, has proceeded along differentiated paths among Italian areas. Moreover, within each region implementation paths seem diversified between single provinces, sketching out a very differentiated picture, with both "developed" areas and districts characterized by substantial implementation lags. Such a territorial differentiation is the key issue used in our evaluation analysis. Using it further allows us to test whether in the districts where the implementation of reform is more advanced the PES are more effective in their impact upon the labour market performance. The PES efficacy itself has been measured in terms of the occupational chances of those people who are registered to the PES. In the evaluation exercise other territorial determinants of employment chances are considered and the different composition of people registered to the PES and those searching for a job through other channels is taken in account using propensity score and instrumental variables techniques. The main outcome of the evaluation exercise is the practical irrelevance of the Italian PES in determining the labour market performance as above measured. In some cases the PES seems to have even a negative impact upon occupational chances; well functioning PES provincial branches however have a positive impact upon the occupational chances for those people more loosely attached to the labour market (individuals not searching actively for a job but available to work at given conditions).