Abstract
In Italy public spending on active labour market policies has been structurally lower than in the rest of European countries. The transition to a system of active welfare and labour market policies requires innovations both in terms of investments and in terms of organization. The European reaction to the Covid crisis has increased the possibility of public expenses. Nonetheless, the persistence of economic instability and the rapid collapse of the geopolitical situation highlights alarming perspective for the future of public investment in employment policies, while new dimensions of fragmentation, fragility and vulnerability emerge in the labour market and come out besides the more traditional ones. In this scenario, the need to create new legal instruments to collect private resources to be allocated to the public intervention on the labour market increases significantly. The research project LABFIN aims therefore to explore all the possibilities to build up labour market policies though social investment and financial innovations, and to improve the understanding of social impact investing from both a legal and economic perspective. Adding the social dimension to a financial product may be a way to attract some investors and to increase financial market participation. Result achieved The research project has explored the potential for shaping labor market policies through social investment and financial innovation, while enhancing the understanding of social impact investing from both legal and economic perspectives. Within the scope of social impact investing, the project considers a range of instruments, including pay-by-results schemes and socially responsible investments, with particular attention to social bonds. The project has analyzed the social impact investing market in Italy, with a focus on investors’ attitudes towards different forms of social impact investment. While public authorities were expected to represent the main constraint on the use of impact finance for social purposes, the evidence indicates that the most significant barriers stem from the position of social partners and trade unions. However, this does not call into question the relevance of the actions envisaged within the project. From a law and policy perspective, the findings highlight several priority areas for intervention. First, there is a clear need to enhance financial literacy among social partners and trade union representatives, to enable a more informed engagement with social impact finance instruments. Second, strengthening structured dialogue between social partners and public institutions is essential, particularly through the identification and alignment of shared social policy objectives. Third, targeted legal and regulatory adjustments are required to address existing constraints, especially those related to public reporting and accountability frameworks, which may currently hinder the adoption of innovative financing mechanisms. Overall, the results suggest that a more coordinated approach—combining capacity-building measures, institutional dialogue, and regulatory innovation—could facilitate the broader and more effective use of social impact finance in labor market policies. The project has achieved its core objectives, providing a multidisciplinary assessment of the role of sustainable and social impact finance in the field of labor market policies. By combining legal and economic perspectives, as well as theoretical and empirical approaches, the project has generated robust evidence on both the opportunities and the structural limitations associated with innovative financial instruments, including social bonds and social impact bonds. The contributions of the research units have enriched the overall results. In particular, the work carried out by the University of Turin has provided important empirical insights into the functioning of sustainable finance markets. The analysis of social bonds has highlighted their growing relevance as well as the need for greater transparency in the allocation of proceeds and in the evaluation of long-term social outcomes. Furthermore, research on sustainable investment preferences has demonstrated the crucial role of financial literacy in shaping investment decisions, while also revealing potential tensions between social objectives and financial returns. The Units from Bologna, Parma and Trento have contributed by addressing key legal and regulatory dimensions of sustainable finance. Research on pension funds and ESG factors has highlighted the increasing complexity of the regulatory framework and the importance of transparency, disclosure obligations, and governance arrangements. The analysis of specific regulatory developments—such as the ban on financing certain activities—has underscored the need for stronger coordination between institutional investors and financial managers. Moreover, the investigation of social impact bonds within the Italian context has confirmed both their potential and their criticalities, particularly in relation to public–private partnerships and the measurement of policy outcomes. Overall, the project findings confirm the relevance of social impact finance as a complementary tool to support labor market policies, while also highlighting the importance of ensuring an adequate legal, institutional, and governance framework. The results emphasize the need to address key challenges, including regulatory constraints, limited market experience, and the role of social partners, particularly trade unions. From a policy perspective, the project identifies several priority areas for future action: strengthening financial literacy among key stakeholders; fostering structured dialogue between public authorities, social partners, and private investors; and promoting regulatory adjustments to facilitate the adoption of outcome-based financing mechanisms. In addition, improving transparency, impact measurement methodologies, and accountability frameworks will be essential to ensure the effectiveness and credibility of these instruments. The project has resulted in the following publications: • Abis D., & Damilano M. (2025), Greenwashing and executive compensation: what is the link? Evidence from banks, International Journal of Bank Marketing, 1-20. (Class A journal– Anvur Area 13/B). • Abis D., Damilano M., Pia P. (2024), Il mercato dei social bond: che cosa ci dicono i numeri?, Bancaria The Journal of The Italian Banking Association, 5, 53-64. (Scientific journal). • Casale D. (2025), Fondi pensione e investimenti sostenibili. Trasparenza, regole di gestione e speciali limiti nel commercio di armi, Rivista del diritto della sicurezza sociale, 2, 201-231 (Class A journal – Anvur area 12). • Casale D. (2025), Pension funds and environmental, social and governance factors in the Italian system: transparency of investments, management rules and the new ban on financing activities linked to unconventional anti-personnel weapons, Italian Labour Law E-Journal, 18-2, 129-157 – (Class A journal Anvur area 12). • Castellucci S. (2025), La finanza sostenibile a support delle politiche attive del lavoro: i social impact bonds, Federalismi, 27, 212-225. – (Class A journal - Anvur area 12). S. Gilotta (2025), La società “benefit” e il problema della transizione in società lucrativa ordinaria (e viceversa), Banca Impresa Società, 1/2025, 41-53 (Class A journal - Anvur area 12) - will be publicly available in postprint version on the IRIS-University of Bologna website from 1 July 2026 (https://cris.unibo.it/handle/11585/1017778) • De Vincentiis P., Abis D. (2025), Non-identical twins: Evidence on greenium in the German treasury bond market, Research in International Business and Finance, 103057. (Class A journal – Anvur Area 13/B). • Salomone R. (2024), The greening of active labour market policies, Italian Labour Law e-Journal Issue 1, Vol. 17 (Class A journal - Anvur area 12). Under review or forthcoming: o Castagno E., Oggero N., Rossi M., One working paper is currently under review and available online as a working paper: Preferences for Sustainable Investing: The Role of Financial Literacy by. o Gilotta S., Preferenze di sostenibilità e interesse finanziario del cliente nella disciplina dei Servizi di investimento, will be published (accepted) in Bancaria, 4/2026 – (Scientific journal - Anvur area 12). o Favretto C., Socially Responsible Finance: An Antidote for African (and European) Unemployment?”, will be published (accepted) in Diritti Lavori Mercati International (Class A journal - Anvur area 12). o One paper on the role of social partners and public bodies in social finance, which will be submitted to a class A journal; o One paper on the impact of social finance on agricultural work, which will be submitted to a class A journal. o One paper on the organizational system of labor policies of the Autonomous Province of Trento will be submitted to a class A journal.
Dettagli del progetto
Responsabile scientifico: Davide Casale
Strutture Unibo coinvolte:
Dipartimento di Sociologia e Diritto dell'Economia
Coordinatore:
Università degli Studi di Trento(Italy)
Contributo totale Unibo: Euro (EUR) 37.184,00
Durata del progetto in mesi: 24
Data di inizio
28/09/2023
Data di fine:
28/02/2026
