What works and for whom: a review of OECD countries' experiences with active labour market policies
AbstractAlthough rather discouraging in general, the evaluation literature indicates some measures that have been successful. Job-search assistance, wage subsidies in the private sector, and labour market training do work for some groups, even if the impacts are not large. Also, the evaluation literature focuses on the impacts of one-off programs. Regular interventions, such as job-search monitoring, intensive interviews, and referrals to vacant jobs, have rarely been evaluated rigorously. Recently, introduced "activation" strategies in some OECD countries do appear to yield significant employment gains for participants. An important element in such strategies is experiments with alternative ways of improving the performance of the public employment service. Activation policies which combine high-quality assistance to find work with pressure on unemployed people to accept job offers can be effective with respect to unemployment duration, but more rapid returns to work sometimes comes at the cost of accepting lower re-employment earnings. Although active policies might give rise to displacement effects in the short run, this need not be case the over the medium run of a few years. Declines in structural employment rates achieved by many OECD countries in the 1990s give some reasons for optimism in this respect.
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Bibliographic InfoPaper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2001:14.
Length: 53 pages
Date of creation: 25 Sep 2001
Date of revision:
Publication status: Published in Swedish Economic Policy Review, 2001, pages 9-56.
job search; wage subsidies; labour market training;
Find related papers by JEL classification:
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-03-04 (All new papers)
- NEP-LTV-2002-04-03 (Unemployment, Inequality & Poverty)
- NEP-MIC-2002-04-08 (Microeconomics)
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