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Active Labor Market Policies

Author

Listed:
  • Bruno Crépon

    (Center for Research in Economics and Statistics (CREST), 92245 Malakoff, France
    Abdul Latif Jameel Poverty Action Lab (J-PAL), Cambridge, Massachusetts 02142)

  • Gerard J. van den Berg

    (Department of Economics, University of Bristol, Bristol BS8 1TH, United Kingdom
    Abdul Latif Jameel Poverty Action Lab (J-PAL), Cambridge, Massachusetts 02142
    Institute for Labour Market Policy Evaluation (IFAU), 75312 Uppsala, Sweden)

Abstract

Active labor market policies are massively used with the objective being to improve labor market outcomes of individuals out of work. Many observational evaluation studies have been published. In this review, we critically assess policy effectiveness. We emphasize insights from recent randomized controlled trials. In addition, we examine policy effects that have not been the primary object of most of the past evaluations, such as anticipatory effects of advance knowledge of future treatments and equilibrium effects, and we discuss the actual implementation of policies. We discuss the importance of heterogeneity of programs and effects and examine the extent to which potential participants are interested in enrollment. We also discuss the assessment of costs and benefits of programs.

Suggested Citation

  • Bruno Crépon & Gerard J. van den Berg, 2016. "Active Labor Market Policies," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 521-546, October.
    • Handle: RePEc:anr:reveco:v:8:y:2016:p:521-546
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    File URL: http://www.annualreviews.org/doi/10.1146/annurev-economics-080614-115738
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    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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