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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. 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).
  2. 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.
  3. 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.
  4. 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.
  5. Blundell, Richard William & Costa Dias, Monica & Meghir, Costas & Van Reenen, John, 2003. "Evaluating the Employment Impact of a Mandatory Job Search Programme," CEPR Discussion Papers 3786, C.E.P.R. Discussion Papers.
  6. Michael Rosholm & Michael Svarer, 2004. "Estimating the Threat Effect of Active Labour Market Programmes," CAM Working Papers 2004-14, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  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.
  8. Bruno Crépon & Muriel Dejemeppe & Marc Gurgand, 2005. "Counseling the unemployed: does it lower unemployment duration and recurrence?," PSE Working Papers halshs-00590769, HAL.
  9. Fitzenberger, Bernd & Speckesser, Stefan, 2005. "Employment effects of the provision of specific professional skills and techniques in Germany," IAB Discussion Paper 200521, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  10. Eichler, Martin & Lechner, Michael, 1999. "An Evaluation of Public Employment Programmes in the East German State of Sachsen-Anhalt," IZA Discussion Papers 94, Institute for the Study of Labor (IZA).
  11. 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.
  12. 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.
  13. 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).
  14. Lechner, Michael & Miquel, Ruth & Wunsch, Conny, 2005. "Long-run effects of public sector sponsored training in West Germany," IAB Discussion Paper 200503, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  15. John Micklewright & Nagy Gyula, 2005. "Job Search Monitoring and Unemployment Duration in Hungary: Evidence from a Randomised Control Trial," Budapest Working Papers on the Labour Market 0509, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  16. Rafael Lalive & Jan C. van Ours & Josef Zweim�ller, . "The Effect of Benefit Sanctions on the Duration of Unemployment," IEW - Working Papers 110, Institute for Empirical Research in Economics - University of Zurich.
  17. van den Berg, Gerard J & van der Klaauw, Bas, 2001. "Counselling and Monitoring of Unemployed Workers: Theory and Evidence from a Controlled Social Experiment," CEPR Discussion Papers 2986, C.E.P.R. Discussion Papers.
  18. 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.
  19. 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.
  20. Kari Hämäläinen & Virve Ollikainen, 2004. "Differential Effects of Active Labour Market Programmes in the Early Stages of Young People's Unemployment," Research Reports 115, Government Institute for Economic Research Finland (VATT).
  21. Anders Stenberg, 2005. "Comprehensive Education for the Unemployed - Evaluating the Effects on Unemployment of the Adult Education Initiative in Sweden," LABOUR, CEIS, vol. 19(1), pages 123-146, 03.
  22. repec:hal:wpaper:halshs-00590769 is not listed on IDEAS
  23. 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.
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