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Indirect Effects of Active Labour Market Policies

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Abstract

This paper provides an overview of the analysis of the indirect effects of active labour market policies. Indirect effects arise where some of the improved labour market outcomes for programme participants come at the expense of other workers or jobseekers. The paper outlines some common theories about how indirect effects operate, and discusses approaches to estimating the strength of indirect effects. It also presents a brief summary of relevant empirical findings. The paper is intended as a relatively non-technical guide for policy analysts working on the design, costing, and evaluation of active labour market policies.

Suggested Citation

  • Mare, David, 2005. "Indirect Effects of Active Labour Market Policies," Motu Working Papers 292900, Motu Economic and Public Policy Research.
    • Handle: RePEc:ags:motuwp:292900
    DOI: 10.22004/ag.econ.292900
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    Cited by:

    1. is not listed on IDEAS
    2. Hohendanner Christian, 2011. "Ein-Euro-Jobs und reguläre Beschäftigung / One-Euro-Jobs and Regular Employment: Eine Analyse potenzieller Substitutionseffekte mit Daten des IAB-Betriebspanels / An Analysis of Potential Substitution," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 231(2), pages 210-246, April.
    3. Jean-Pierre de Raad & Grant Andrews, 2009. "The unemployment challenge : Labour market policies for the recession," NZIER Working Paper 2009/2, New Zealand Institute of Economic Research.
    4. Ivana Barkovic, 2009. "From Employment to Employability: the Role of Active Labor Market Policies in Croatia," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 5, pages 399-413.
    5. repec:iab:iabdpa:201501 is not listed on IDEAS
    6. Arthur, Grimes & Tim, Denne & Philippa, Howden-Chapman & Richard, Arnold & Lucy, Telfar-Barnard & Nicholas, Preval & Chris, Young, 2012. "Cost benefit analysis of the Warm Up New Zealand: Heat Smart programme," MPRA Paper 99919, University Library of Munich, Germany.
    7. Moczall, Andreas, 2013. "Subsidies for substitutes? : New evidence on deadweight loss and substitution effects of a wage subsidy for hard-to-place job-seekers," IAB-Discussion Paper 201305, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Moczall, Andreas, 2015. "The effect of hiring subsidies on regular wages," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113225, Verein für Socialpolitik / German Economic Association.

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    Keywords

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    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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