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The Effectiveness of European Active Labor Market Policy

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Author Info
Jochen Kluve ()
Abstract

Measures of Active Labor Market Policy are widely used in European countries, but despite many econometric evaluation studies no conclusive cross- country evidence exists regarding “what program works for what target group under what (economic and institutional) circumstances?”. This paper results from an extensive research project for the European Commission aimed at answering that question using a meta-analytical framework. The empirical results are surprisingly clear-cut: Rather than contextual factors such as labor market institutions or the business cycle, it is almost exclusively the program type that matters for program effectiveness. While direct employment programs in the public sector appear detrimental,wage subsidies and “Services and Sanctions” can be effective in increasing participants’ employment probability.

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Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung in its series RWI Discussion Papers with number 0037.

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Length: 48 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:rwi:dpaper:0037

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Related research
Keywords: Active Labor Market Policy; Program evaluation; Meta analysis.;

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Find related papers by JEL classification:
J00 - Labor and Demographic Economics - - General - - - General
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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  1. Jahn, Elke J. & Wagner, Thomas, 2008. "Do Targeted Hiring Subsidies and Profiling Techniques Reduce Unemployment?," IZA Discussion Papers 3768, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Hujer, Reinhard & Thomsen, Stephan L. & Zeiss, Christopher, 2006. "The effects of short-term training measures on the individual unemployment duration in West Germany," ZEW Discussion Papers 06-65, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  3. Osikominu, Aderonke & Orlyanskaya, Olga & Fitzenberger, Bernd & Waller, Marie, 2008. "Déj? Vu? Short-Term Training in Germany 1980-1992 and 2000-2003," ZEW Discussion Papers 08-038, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  4. Annette Bergemann & Gerard van den Berg, 2006. "Active labour market policy effects for women in Europe - a survey," IFS Working Papers W06/26, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  5. Manuel Frondel & Rainer Kambeck & Christoph M. Schmidt, 2006. "Hard Coal Subsidies: A Never-Ending Story?," RWI Discussion Papers 0053, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
    Other versions:
  6. Manuel Frondel & Nolan Ritter & Christoph M. Schmidt, 2008. "Germany's Solar Cell Promotion: Dark Clouds on the Horizon," Ruhr Economic Papers 0040, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
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  7. Ivana Barkovic, 2009. "From Employment to Employability: the Role of Active Labor Market Policies in Croatia," Interdisciplinary Management Research, Faculty of Economics in Osijek, Croatia, vol. 5, pages 399-413. [Downloadable!]
  8. Rosholm, Michael, 2008. "Experimental Evidence on the Nature of the Danish Employment Miracle," IZA Discussion Papers 3620, Institute for the Study of Labor (IZA). [Downloadable!]
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  9. Tattara, Giuseppe & Valentini, Marco, 2008. "Can employment subsidies and greater labour market flexibility increase job opportunities for youth? Revisiting the Italian On-the-job Training Program," MPRA Paper 10370, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  10. Pierre Koning, 2006. "Measuring the Effectiveness of Public Employment Service (PES) Workers," CPB Discussion Papers 73, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  11. H. Lehmann & J. Kluve, 2008. "Assessing Active Labor Market Policies in Transition Economies," Working Papers 646, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
  12. Ekhaugen, Tyra, 2007. "Long-term Outcomes of Vocational Rehabilitation Programs: Labor Market Transitions and Job Durations for Immigrants," Memorandum 10/2007, Oslo University, Department of Economics. [Downloadable!]
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