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Would active labor market policies help combat high U.S. unemployment?

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  • Jun Nie
  • Ethan Struby

Abstract

Two years after the end of the 2007-09 recession, the unemployment rate in the United States remains above 9 percent - roughly double its pre-recession level. ; Nie and Struby analyze the cyclical and structural components of this elevated level of unemployment, active and passive labor market policies, and how the policies are utilized in the United States and 20 Organization for Economic Cooperation Development countries. ; The analysis finds that two active programs can be particularly effective: training programs that equip unemployed workers with skills that are in demand and job-search assistance that matches unemployed workers with employers. These findings - together with evidence that the U.S. labor market currently suffers from a certain amount of structural unemployment - suggest that the United States could benefit from more training programs and job-search assistance.

Suggested Citation

  • Jun Nie & Ethan Struby, 2011. "Would active labor market policies help combat high U.S. unemployment?," Economic Review, Federal Reserve Bank of Kansas City, vol. 96(Q III), pages 35-69.
    • Handle: RePEc:fip:fedker:y:2011:i:qiii:p:35-69:n:v.96no.3
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    References listed on IDEAS

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    Cited by:

    1. Catia Montagna & Hassan Molana & Daniel Kopasker & Holger Görg, 2013. "Negative Shocks, Job Creation, and Selection. WWWforEurope Working Paper No. 11," WIFO Studies, WIFO, number 46858, April.
    2. Marwa Sahnoun & Chokri Abdennadher, 2018. "The assessment of active labor market policies: evidence from OECD countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 257-283, August.
    3. Margarita Atanassova & Elka Dimitrova, 2018. "Active labor market policy in Bulgaria and participation of the population aged 25-64 in education and training," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-18,19-32.

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