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Active labor market programs for the integration of youths and immigrants into the labor market: the Nordic experience

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  • Nekby, Lena

Abstract

The purpose of this study is to survey the evaluation literature on active labor market programs (ALMPs) in the Nordic labor market in order to provide a general overview of the success and failure of different types of ALMPs as well as a more detailed account of the Nordic experience with targeted programs towards vulnerable groups such as unemployed youth and immigrants. The consensus in the evaluation literature is that the types of ALMPs that are efficient in reducing unemployment duration and increasing employment chances for the unemployed in general are also the most efficient for vulnerable groups. Programs that more closely approximate regular employment such as those provided by wage subsidized employment programs yield the most unequivocally positive results for subsequent employment outcomes. In addition, intensive contact and counseling with Public Employment Service (PES)caseworkers is found to be effective for vulnerable groups. Several studies suggest that the latter is a program effect per se and not due to threat effects for unemployed youth and immigrants, perhaps due to less negative perceptions concerning intensive contacts with the PES among vulnerable groups in comparison to other unemployed groups. Intensive contacts with the PES may also promote better matches between individual training needs and actual training programs as well as compensate for relatively less developed networks and employer contacts among unemployed youth and immigrants.

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  • Nekby, Lena, 2008. "Active labor market programs for the integration of youths and immigrants into the labor market: the Nordic experience," Macroeconomía del Desarrollo 5441, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    • Handle: RePEc:ecr:col037:5441
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    Cited by:

    1. Pernilla Andersson Joona & Lena Nekby, 2012. "Intensive Coaching of New Immigrants: An Evaluation Based on Random Program Assignment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(2), pages 575-600, June.
    2. Anastasia Blouchoutzi & Georgios Tsaples & Dimitra Manou & Jason Papathanasiou, 2023. "Investigating Public–Private Cooperation in Migrant Labor Market Integration: A System Dynamics Study to Explore the Challenge for Greece," Economies, MDPI, vol. 11(2), pages 1-27, January.
    3. Walter, Thomas & Butschek, Sebastian, 2013. "What Active Labour Market Programmes Work for Immigrants in Europe?," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79745, Verein für Socialpolitik / German Economic Association.
    4. Gidehag, Anton, 2019. "Firms’ labor cost savings and recruitment of nonwestern immigrants: The unintended effect of a payroll tax reform," HFI Working Papers 5, Institute of Retail Economics (Handelns Forskningsinstitut).
    5. Sebastian Butschek & Thomas Walter, 2014. "What active labour market programmes work for immigrants in Europe? A meta-analysis of the evaluation literature," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-18, December.
    6. Sven-Olov Daunfeldt & Anton Gidehag & Niklas Rudholm, 2021. "How Do Firms Respond to Reduced Labor Costs? Evidence from the 2007 Swedish Payroll Tax Reform," Journal of Industry, Competition and Trade, Springer, vol. 21(3), pages 315-338, September.
    7. Ágota Scharle & Balázs Váradi, 2013. "Identifying Barriers to Institutional Change in Disability Services. WWWforEurope Working Paper No. 41," WIFO Studies, WIFO, number 47016, Juni.
    8. Frederik Thuesen & Vibeke Jakobsen & Nina T. Dalgaard & Bjørn C. A. Viinholt, 2020. "PROTOCOL: Interventions to improve the economic self‐sufficiency of unemployed immigrants from non‐Western countries," Campbell Systematic Reviews, John Wiley & Sons, vol. 16(4), December.

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