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The Political Economy of Active Labor-Market Policy

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  • Giuliano Bonoli

    (Institut de Hautes Études en Administration Publique (IDHEAP), Lausanne, Switzerland, giuliano.bonoli@idheap.unil.ch)

Abstract

Active labor-market policies (ALMPs) have developed significantly over the past two decades across Organization for Economic Cooperation and Development (OECD) countries, with substantial cross-national differences in terms of both extent and overall orientation. The objective of this article is to account for cross-national variation in this policy field. It starts by reviewing existing scholarship concerning political, institutional, and ideational determinants of ALMPs. It then argues that ALMP is too broad a category to be used without further specification, and it develops a typology of four different types of ALMPs: incentive reinforcement, employment assistance, occupation, and human capital investment. These are discussed and examined through ALMP expenditure profiles in selected countries. The article uses this typology to analyze ALMP trajectories in six Western European countries and shows that the role of this instrument changes dramatically over time. It concludes that there is little regularity in the political determinants of ALMPs. In contrast, it finds strong institutional and ideational effects, nested in the interaction between the changing economic context and existing labor-market policies.

Suggested Citation

  • Giuliano Bonoli, 2010. "The Political Economy of Active Labor-Market Policy," Politics & Society, , vol. 38(4), pages 435-457, December.
    • Handle: RePEc:sae:polsoc:v:38:y:2010:i:4:p:435-457
    DOI: 10.1177/0032329210381235
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    References listed on IDEAS

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    Cited by:

    1. Smedsvik, Bård & Iacono, Roberto, 2022. "(In)visible sanctions: micro-level evidence on compulsory activation for young welfare recipients," INET Oxford Working Papers 2022-24, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    2. Xabier Garcia-Fuente, 2021. "The Paradox of Redistribution in Time. Social Spending in 53 Countries, 1967-2018," LIS Working papers 815, LIS Cross-National Data Center in Luxembourg.
    3. Daniel Sage, 2015. "Do Active Labour Market Policies Promote the Subjective Well-Being of the Unemployed? Evidence from the UK National Well-Being Programme," Journal of Happiness Studies, Springer, vol. 16(5), pages 1281-1298, October.
    4. Wulfgramm, Melike, 2012. "Country-specific life satisfaction effects of unemployment: Does labour market policy matter?," Working papers of the ZeS 07/2012, University of Bremen, Centre for Social Policy Research (ZeS).
    5. Giliberto Capano & Andrea Lippi, 2017. "How policy instruments are chosen: patterns of decision makers’ choices," Policy Sciences, Springer;Society of Policy Sciences, vol. 50(2), pages 269-293, June.
    6. Favero, Fausto, 2022. "Political economy of labor market policies for current labor market transformations in Europe," IPE Working Papers 180/2022, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    7. Moritz Zöllner & Michael Fritsch & Michael Wyrwich, 2016. "An Evaluation of German Active Labor Market Policies and its Entrepreneurship Promotion," Jena Economics Research Papers 2016-022, Friedrich-Schiller-University Jena.
    8. Bakker, Vincent & Van Vliet, Olaf, 2019. "Social Investment, Employment Outcomes and Policy and Institutional Complementarities: A Comparative Analysis across 26 OECD countries," MPRA Paper 96140, University Library of Munich, Germany.
    9. Katarína LukÃ¡Ä ová & Lucia KovÃ¡Ä ová & Martin Kahanec, 2022. "Industrial relations and unemployment benefit schemes in the Visegrad countries during the COVID-19 pandemic," Transfer: European Review of Labour and Research, , vol. 28(2), pages 229-246, May.
    10. Furth Salim, 2020. "Does Census Hiring Stimulate Jobs Growth?," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-21, March.
    11. Sumon Kumar Bhaumik & Richard Frensch & Stephan Huber, 2021. "Political economy of labor market institutions in a globalised era," Working Papers 391, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    12. Daniel Sage, 2015. "Do Active Labour Market Policies Promote the Well-Being, Health and Social Capital of the Unemployed? Evidence from the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(2), pages 319-337, November.
    13. Fervers, Lukas, 2018. "Can public employment schemes break the negative spiral of long-term unemployment, social exclusion and loss of skills? Evidence from Germany," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 18-33.
    14. Lukas Fervers, 2016. "Fast track to the labour market or highway to hell? The effect of activation policies on quantity and quality of labour market integration," IAW Discussion Papers 125, Institut für Angewandte Wirtschaftsforschung (IAW).
    15. Marchal, Sarah & Marx, Ive & Van Mechelen, Natascha, 2011. "Do Europe's Minimum Income Schemes Provide Adequate Shelter against the Economic Crisis and How, If at All, Have Governments Responded?," IZA Discussion Papers 6264, Institute of Labor Economics (IZA).
    16. Regan, Mark & Keane, Claire & Walsh, John R., 2018. "Lone parent incomes and work incentives," Papers BP2019/1, Economic and Social Research Institute (ESRI).
    17. Alic BÎRCA, 2023. "Workforce Participation in Active Labour Market Policies: A Comparative Analysis in EU Member States," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(2), pages 173-187, May.
    18. Plomien, Ania & Schwartz, Gregory, 2023. "Market-reach into social reproduction and transnational labour mobility in Europe," LSE Research Online Documents on Economics 119900, London School of Economics and Political Science, LSE Library.

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