Compulsion in active labour market programmes
AbstractThis paper examines compulsion in active labour market programmes (ALMP). When an unemplyed worker has to participate in a programme in order to remain eligible for benefits there are two seperate effects. First, there is the treatment effect, i.e. the programme makes the worker more attractive for a potential employer or makes search more efficient, thus helping the unemployed worker to find a job more quickly. Second, there is the compulsion effect, i.e. because the worker has to attend the programme his value of being unemployed drops and h is stimulated and a job more quickly. So, both effects induce the worker to find a job more quickly. The difference between the treatment effect and the compulsion effect concerns the quality of the post-unemployment job. The treatment effect improves the quality; the compulsion effect lowers the quality of post-unemplooyment jobs.
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Bibliographic InfoArticle provided by National Institute of Economic and Social Research in its journal National Institute Economic Review.
Volume (Year): 202 (2007)
Issue (Month): 1 (October)
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compulsion; active labour market policies;
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- Blasco, Sylvie & Pertold-Gebicka, Barbara, 2013.
"Employment policies, hiring practices and firm performance,"
Elsevier, vol. 25(C), pages 12-24.
- Sylvie Blasco & Barbara Pertold-Gebicka, 2012. "Employment Policies, Hiring Practices and Firm Performance," Working Papers 2012-27, Centre de Recherche en Economie et Statistique.
- Blasco, Sylvie & Pertold-Gebicka, Barbara, 2012. "Employment Policies, Hiring Practices and Firm Performance," IZA Discussion Papers 7013, Institute for the Study of Labor (IZA).
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