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Are active labour market policies effective in activating and integrating low-skilled individuals? An international comparison

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  • Verónica Escudero

    (PSE - Paris School of Economics, PSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, ILO - International Labour Organization - International Labour Organization)

Abstract

This paper examines the effectiveness of active labour market policies (ALMPs) in improving labour market outcomes, especially of low-skilled individuals. The empirical analysis consists of an aggregate impact approach based on a pooled cross country and timeseries database for 31 advanced countries during the period 1985–2010. A novelty of the paper is that it includes aspects of the delivery system to see how the performance of ALMPs is affected by different implementation characteristics. Among the notable results, the paper finds that ALMPs matter at the aggregate level, both, in terms of reducing unemployment, but also in terms of increasing employment and participation. Interestingly, start-up incentives are more effective in reducing unemployment than other ALMPs. The positive effects seem to be particularly beneficial for the low-skilled. In terms of implementation, the paper finds that the most favourable aspect is the allocation of resources to programme administration. Finally, a disruption of policy continuity is associated with negative effects for all labour market variables analysed.

Suggested Citation

  • Verónica Escudero, 2015. "Are active labour market policies effective in activating and integrating low-skilled individuals? An international comparison," PSE Working Papers halshs-01105347, HAL.
  • Handle: RePEc:hal:psewpa:halshs-01105347
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01105347
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    Cited by:

    1. Goulas, Eleftherios & Zervoyianni, Athina, 2018. "Active labour-market policies and output growth: Is there a causal relationship?," Economic Modelling, Elsevier, vol. 73(C), pages 1-14.
    2. Björn Nilsson, 2019. "The School-to-Work Transition in Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 55(5), pages 745-764, May.
    3. Floro Ernesto Caroleo & Elvira Ciociano & Sergio Destefanis, 2017. "The role of the education systems and the labour market institutions in enhancing youth employment: a cross-country analysis," Discussion Papers 1_2017, CRISEI, University of Naples "Parthenope", Italy.
    4. Verónica Escudero & Elva López Mourelo, 2018. "?La Garantie européenne pour la jeunesse?. Bilan systématique des mises en œuvre dans les pays membres," Travail et Emploi, La DARES, vol. 0(1), pages 89-122.
    5. Lisa Bagnoli & Antonio Estache, 2019. "Mentoring labor market integration of migrants: Policy insights from a survey of mentoring theory and practice," Working Papers ECARES 2019-15, ULB -- Universite Libre de Bruxelles.
    6. 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.
    7. Roberto Iacono, 2017. "Minimum income schemes in Europe: is there a trade-off with activation policies?," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-15, December.
    8. repec:ilo:ilowps:488891 is not listed on IDEAS
    9. Escudero, Verónica & Horne, Richard & Kühn, Stefan & Milasi, Santo & Elva López, Mourelo & Pignatti, Clemente & Silvander, Johanna & Tobin, Steven, 2014. "An employment-oriented investment strategy for Europe," Studies on Growth with Equity 487056, International Labour Office, Research Department.
    10. Escudero, Verónica. & Horne, Richard & Kühn, Stefan. & Milasi, Santo. & López Mourelo, Elva. & Pignatti, Clemente. & Silvander, Johanna. & Tobin, Steven., 2014. "An employment-oriented investment strategy for Europe," Studies on Growth with Equity, International Labour Office, Research Department, number 994870563402676, January.

    More about this item

    Keywords

    unemployment; employment; participation rate; ALMPs; implementation; startup incentives;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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