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Active Labor Market Programs - Employment Gain or Fiscal Drain?

  • Alessio J. G. Brown
  • Johannes Koettl

This paper provides a new perspective in classifying ALMPs depending on their main objective, also in light of their relevance and cost-effectiveness during normal times, during a crisis, and during recovery. We distinguish ALMPs that provide incentives for retaining employment, incentives for creating employment, incentives for seeking and keeping a job, incentives for human capital enhancement, and improved labor market matching. We will discuss their direct and indirect effects determining their cost- effectiveness as well as to provide examples which may provide lessons to learn for transition and developing countries. This paper provides a systematic overview of how, why, when and to what extent specific policies are effective

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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1785.

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Length: 46 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:kie:kieliw:1785
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