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Evaluating Labour Market Policy

Author

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  • Eichhorst, Werner

    () (IZA)

  • Konle-Seidl, Regina

    () (Institute for Employment Research (IAB), Nuremberg)

Abstract

Labour market institutions are deemed to have a great influence on the level and structure of employment. This holds for regulation on employment protection, minimum wages or tax/benefit systems as well as active labour market policies. This is why policy makers implement labour market reforms in order to stimulate job creation. The hope linked to labour market reforms is a sustainable reduction of structural and cyclical unemployment. This chapter reviews major approaches and findings on the evaluation of the impact of different labour market institutions but pays particular attention to active labour market policies that play an important role in the portfolio of economic policy makers in many OECD countries for several decades. Rigorous evaluation in this field has grown rapidly since the early 2000s. Describing concrete evaluation studies we focus on the important role of good data, methodological problems and discuss the impact on participants as well as possible effects on non-participants. We further describe how to investigate whether a programme also achieved positive net effects at a macroeconomic level. Finally, we have a closer look on policy implications and interactions with other institutional features.

Suggested Citation

  • Eichhorst, Werner & Konle-Seidl, Regina, 2016. "Evaluating Labour Market Policy," IZA Discussion Papers 9966, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9966
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    References listed on IDEAS

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    1. Bruno Crépon & Esther Duflo & Marc Gurgand & Roland Rathelot & Philippe Zamora, 2013. "Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 128(2), pages 531-580.
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    Cited by:

    1. Gianluca Misuraca & Giulio Pasi & Fabienne Abadie & Csaba Kucsera & Marco Virginillo, 2017. "Exploring the role of ICT-Enabled Social Innovation to support the modernisation of EU Social Protection Systems: findings and insights from analysis of case studies in fourteen Member States," JRC Working Papers JRC106484, Joint Research Centre (Seville site).
    2. repec:spr:epolit:v:35:y:2018:i:2:d:10.1007_s40888-018-0102-x is not listed on IDEAS

    More about this item

    Keywords

    active labour market policies; evaluation; labour market institutions; employment protection;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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