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The Effectiveness of European Active Labor Market Policy

  • Jochen Kluve

    ()

Measures of Active Labor Market Policy are widely used in European countries, but despite many econometric evaluation studies no conclusive cross- country evidence exists regarding “what program works for what target group under what (economic and institutional) circumstances?”. This paper results from an extensive research project for the European Commission aimed at answering that question using a meta-analytical framework. The empirical results are surprisingly clear-cut: Rather than contextual factors such as labor market institutions or the business cycle, it is almost exclusively the program type that matters for program effectiveness. While direct employment programs in the public sector appear detrimental,wage subsidies and “Services and Sanctions” can be effective in increasing participants’ employment probability.

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File URL: http://repec.rwi-essen.de/files/DP_06_037.pdf
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Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung in its series RWI Discussion Papers with number 0037.

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Length: 48 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:rwi:dpaper:0037
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  1. van den Bergh, Gerhard & van deer Klaauw, Bas, 2001. "Counseling and monitoring of unemployed workers: theory and evidence from a controlled social experiment," Working Paper Series 2001:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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  7. Jaap H. Abbring & Gerard J. Berg & Jan C. Ours, 2005. "The Effect of Unemployment Insurance Sanctions on the Transition Rate from Unemployment to Employment," Economic Journal, Royal Economic Society, vol. 115(505), pages 602-630, 07.
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  10. Arellano, F. Alfonso, 2005. "Do training programmes get the unemployedback to work?: a look at the Spanish experience," UC3M Working papers. Economics we052515, Universidad Carlos III de Madrid. Departamento de Economía.
  11. Bruno, CREPON & Muriel, DEJEMEPPE & Marc, GURGAND, 2005. "Counseling the unemployed : does it lower unemployment duration and recurrence ?," Discussion Papers (ECON - Département des Sciences Economiques) 2005034, Université catholique de Louvain, Département des Sciences Economiques.
  12. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 409-448, October.
  13. Weber, Andrea & Hofer, Helmut, 2004. "Employment Effects of Early Interventions on Job Search Programs," IZA Discussion Papers 1076, Institute for the Study of Labor (IZA).
  14. Aakvik, A., 1999. "Estimating the Employment Effects of Education for Disabled Workers in Norway," Norway; Department of Economics, University of Bergen 0399, Department of Economics, University of Bergen.
  15. Rosholm, Michael & Svarer, Michael, 2004. "Estimating the Threat Effect of Active Labour Market Programmes," IZA Discussion Papers 1300, Institute for the Study of Labor (IZA).
  16. Jensen, Peter & Rosholm, Michael & Svarer, Michael, 2003. "The response of youth unemployment to benefits, incentives, and sanctions," European Journal of Political Economy, Elsevier, vol. 19(2), pages 301-316, June.
  17. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
  18. Micklewright, John & Nagy, Gyula, 2005. "Job Search Monitoring and Unemployment Duration in Hungary: Evidence from a Randomised Control Trial," IZA Discussion Papers 1839, Institute for the Study of Labor (IZA).
  19. Denis Fougère & Jacqueline Pradel & Muriel Roger, 2005. "Does Job-Search Assistance Affect Search Effort and Outcomes ? A Microeconometric Analysis of Public Versus Private Search Methods," Working Papers 2005-33, Centre de Recherche en Economie et Statistique.
  20. Carling, Kenneth & Gustafson, Lena, 1999. "Self-employment grants vs. subsidized employment: Is there a difference in the re-unemployment risk?," Working Paper Series 1999:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  21. Cavaco, Sandra & Fougère, Denis & Pouget, Julien, 2005. "Estimating the Effect of a Retraining Program for Displaced Workers on Their Transition to Permanent Jobs," IZA Discussion Papers 1513, Institute for the Study of Labor (IZA).
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  23. repec:hal:wpaper:halshs-00590769 is not listed on IDEAS
  24. Røed, Knut & Raaum, Oddbjørn, 2003. "The Effect of Programme Participation on the Transition Rate from Unemployment to Employment," Memorandum 13/2003, Oslo University, Department of Economics.
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