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Active labor market programs employment gain or fiscal drain?

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  • Brown, Alessio J. G.
  • Köttl, Johannes

Abstract

This paper provides a new perspective in classifying ALMPs depending on their main objective, also in light of their relevance and cost-effectiveness during normal times, during a crisis, and during recovery. We distinguish ALMPs that provide incentives for retaining employment, incentives for creating employment, incentives for seeking and keeping a job, incentives for human capital enhancement, and improved labor market matching. We will discuss their direct and indirect effects determining their cost- effectiveness as well as to provide examples which may provide lessons to learn for transition and developing countries. This paper provides a systematic overview of how, why, when and to what extent specific policies are effective.

Suggested Citation

  • Brown, Alessio J. G. & Köttl, Johannes, 2012. "Active labor market programs employment gain or fiscal drain?," Kiel Working Papers 1785, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1785
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    18. Pasquini, Alessandra & Centra, Marco & Pellegrini, Guido, 2019. "Fighting long-term unemployment: Do we have the whole picture?," Labour Economics, Elsevier, vol. 61(C).
    19. Blázquez, Maite & Herrarte, Ainhoa & Sáez, Felipe, 2019. "Training and job search assistance programmes in Spain: The case of long-term unemployed," Journal of Policy Modeling, Elsevier, vol. 41(2), pages 316-335.
    20. Michael Lechner & Conny Wunsch, 2009. "Are Training Programs More Effective When Unemployment Is High?," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 653-692, October.

    More about this item

    Keywords

    active labor market programs; short work; subsidies; training; workfare; activation; sanctions; job search assistance; intermediation; counselling; cost- effectiveness;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

    Statistics

    Access and download statistics

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