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Temporary active labour market programmes - potential effects on unemployment

Author

Listed:
  • Outi Aarnio

    (Department of Economics, Åbo Akademi University, Finland and School of Social Sciences, University of Bath, Claverton Down, Bath, UK)

Abstract

This paper assesses the potential effects of temporary active labour market programmes on unemployment and regular employment. The effect of such programmes is analysed in the framework of a (partial) flow equilibrium model, which explicitly takes into account the potential changes in the programme participants' probability of gaining regular work and/or changes in the average length of future employment contracts of the programme participants (average separation rate). We will also discuss the potential wage setting effects of active labour market policies and indicate how the equilibrium unemployment may be affected.

Suggested Citation

  • Outi Aarnio, 1993. "Temporary active labour market programmes - potential effects on unemployment," Finnish Economic Papers, Finnish Economic Association, vol. 6(1), pages 13-24, Spring.
  • Handle: RePEc:fep:journl:v:6:y:1993:i:1:p:13-24
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    References listed on IDEAS

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    1. Calmfors, Lars & Horn, Henrik, 1986. "Employment Policies and Centralized Wage-Setting," Economica, London School of Economics and Political Science, vol. 53(211), pages 281-302, August.
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    Cited by:

    1. J Richardson, 1997. "Can Active Labour Market Policy Work? Some Theoretical Considerations," CEP Discussion Papers dp0331, Centre for Economic Performance, LSE.

    More about this item

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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