Integrating Labour Activation and Territorial Development: The case of the LavoRAS Programme in Sardinia

R. Paci (), A. Pireddu () and G. Caruso ()

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: Activation policies are increasingly expected to address not only labour market exclusion but also broader territorial challenges. This paper investigates LavoRAS, a regional programme introduced in Sardinia (Italy) that combines employment activation with the provision of local public works and services, thereby linking workfare-oriented instruments to place-based development objectives. Drawing on an integrated mixed-methods design—combining administrative evidence on project portfolios and job starts with qualitative insights from interviews and focus groups—we analyse how institutional arrangements and governance capacity shape implementation across territories. The evidence suggests that LavoRAS operated as a place-based policy instrument by mobilising local actors and resources, yet its effects were strongly mediated by administrative capacity and coordination mechanisms. In particular, changes in the governance architecture contributed to the emergence of a "two-speed" implementation pattern, with stronger municipalities and localities capturing more complex projects and opportunities, while weaker areas remained confined to lower-capacity interventions. We argue that activation programmes can contribute to territorial development when embedded in stable multi-level governance and supported by coordination infrastructures; conversely, governance discontinuities risk amplifying spatial inequalities. The paper advances planning and regional policy debates by specifying the institutional mechanisms through which activation measures interact with territorial capital and produce differentiated spatial outcomes.

Keywords: workfare policy; place-based policy; territorial inequalities; regional governance; institutional capacity (search for similar items in EconPapers)
JEL-codes: H83 J68 R11 R58 (search for similar items in EconPapers)
Date: 2026
New Economics Papers: this item is included in nep-ppm
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