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Programme selection in active labour market policy by one's own contribution?

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  • Volker Meier

Abstract

Given skill-based unemployment rates, which decline with an increasing level of education, individuals invest too little in education and training. They take account of their legal claim to wage replacement benefits and therefore place too much value on possible periods of unemployment. This may justify education and training subsidies like those provided by active labour market policy. With free access and full cost assumption by the Labour Agency, the demand for such programmes is too high, however, explaining at least part of the unsatisfactory evaluation results. A meaningful alternative would be to have participants in the programmes assume part of the costs, where possibly lacking funds could be bridged by loans.

Suggested Citation

  • Volker Meier, 2010. "Programme selection in active labour market policy by one's own contribution?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(17), pages 27-29, September.
    • Handle: RePEc:ces:ifosdt:v:63:y:2010:i:17:p:27-29
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    References listed on IDEAS

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    1. Eggert, Wolfgang & Krieger, Tim & Meier, Volker, 2010. "Education, unemployment and migration," Journal of Public Economics, Elsevier, vol. 94(5-6), pages 354-362, June.
    2. James Albrecht & Gerard van den Berg & Susan Vroman, 2009. "The Aggregate Labor Market Effects of the Swedish Knowledge Lift Program," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 129-146, January.
    3. Michael Lechner & Ruth Miquel & Conny Wunsch, 2011. "Long‐Run Effects Of Public Sector Sponsored Training In West Germany," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 742-784, August.
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    5. Annette Bergemann & Bernd Fitzenberger & Stefan Speckesser, 2009. "Evaluating the dynamic employment effects of training programs in East Germany using conditional difference-in-differences," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(5), pages 797-823.
    6. Kodde, David A., 1988. "Unemployment expectations and human capital formation," European Economic Review, Elsevier, vol. 32(8), pages 1645-1660, October.
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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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