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What do NEETs need ? The overall effect of active and passive labor market policies

Author

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  • Francesco Filippucci

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris)

Abstract

The overall effect of active and passive labor market policies is pivotal to motivate programs combining the two components. This paper evaluates a flagship French program for disadvantaged youth Not in Employment Education or Training (NEETs) that combines a year of cash transfers and activation policies. The results show a positive total effect of the program on employment (+21 percentage points, +64% relative to control in LATE terms) emerging after program termination. The analysis of mechanisms suggests a negative effect of the cash transfer component on employment and lock-in from training, compensated by a positive effect of activation policies.

Suggested Citation

  • Francesco Filippucci, 2025. "What do NEETs need ? The overall effect of active and passive labor market policies," Working Papers halshs-03524083, HAL.
    • Handle: RePEc:hal:wpaper:halshs-03524083
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03524083v2
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    1. Aparicio Fenoll, Ainoa & Quaranta, Roberto, 2025. "The uneven effects of conditional cash transfers on women and men," Labour Economics, Elsevier, vol. 94(C).

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