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Reviewing development of active labour market policies and the evaluation techniques

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  • Jovan, Zubovic
  • Jonel, Subic

Abstract

Active labor market policies are commonly used tool to fight unemployment. In the early 1960s all Scandinavian countires have introduced several different measures to have an effect on their labor markets. In the late 1970s in most developed countries of OECD government expenditures on those policies reached the level of 1-1.5% of GDP. High levels of expenditures created a need to assess the impact of such measures and perform their cost-benefit analysis. Evaluations have in the previous 30 years been undertaken by using different methods: from experimental and quasi-experimental, to micro and macro analyses. Most precise evaluations are based on complex econometric methods. Moreover, during last decade there have been several meta-analyses to make cross-analysis of evaluations made worldwide in a long time-span. General conclusions of most papers are that ALMP do not have very high influence on the employability. The best results are experienced in services provided by local national employment services, as well in training programs, especially in on-job training. In the last few years there have appeared some indications that subsidized employment has high positive effects, however there is no general consensus on that matter. Despite large number of published papers on evaluations, there has been no research aimed on analyzing overall ALMP effects on the economy, and creation of a model which could ex-ante estimate future effects of ALMP.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35282.

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Date of creation: 17 Oct 2011
Date of revision: 17 Oct 2011
Handle: RePEc:pra:mprapa:35282

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Keywords: Active policies; evaluation; econometric models; economy;

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  1. Reinhard Hujer & Uwe Blien & Marco Caliendo & Christopher Zeiss, 2006. "Macroeconometric Evaluation of Active Labour Market Policies in Germany. A Dynamic Panel Approach Using Regional Data," AIEL Series in Labour Economics, AIEL - Associazione Italiana Economisti del Lavoro, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 14, pages 287-309 AIEL - Associazione Italiana Economisti del Lavoro.
  2. Martin Neil Baily & James Tobin, 1977. "Macroeconomic Effects of Selective Public Employment and Wage Subsidies," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 8(2), pages 511-544.
  3. John P Martin, 1998. "What Works Among Active Labour Market Policies: Evidence from OECD Countries' Experiences," RBA Annual Conference Volume, Reserve Bank of Australia, in: Guy Debelle & Jeff Borland (ed.), Unemployment and the Australian Labour Market Reserve Bank of Australia.
  4. Holger Bonin & Ulf Rinne, 2014. "‘Beautiful Serbia’ - objective and subjective outcomes of active labour market policy in a transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 22(1), pages 43-67, 01.
  5. Hartmut Lehmann & Jochen Kluve, 2010. "Assessing Active Labour Market Policies in Transition Economies," AIEL Series in Labour Economics, AIEL - Associazione Italiana Economisti del Lavoro, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?, edition 1, chapter 11, pages 275-307 AIEL - Associazione Italiana Economisti del Lavoro.
  6. Lars Calmfors & Anders Forslund & Maria Hemström, 2002. "Does Active Labour Market Policy Work? Lessons from the Swedish Experiences," CESifo Working Paper Series 675, CESifo Group Munich.
  7. Stephen Nickell & Luca Nunziata & Wolfgang Ochel & Glenda Quintini, 2001. "The Beveridge curve, unemployment and wages in the OECD from the 1960s to the 1990s - preliminary version," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20113, London School of Economics and Political Science, LSE Library.
  8. Robinson, Peter, 2000. "Active Labour-Market Policies: A Case of Evidence-Based Policy-Making?," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 16(1), pages 13-26, Spring.
  9. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  10. Tatiana Mosteanu & Mihaela Iacob, 2008. "Theories And Approaches Regarding The Cost – Benefit Analysis Role And Principles," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, Asociatia Generala a Economistilor din Romania - AGER, vol. 11(11(528)(s), pages 7-13, November.
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