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What works, who works? The impact of active labour market programmes on the employment prospects of young people in Ireland

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  • O'Connell, Philip J.
  • MacGinnity, Fran

Abstract

The international literature on active labour market programmes has generated inconsistent and confusing, but generally pessimistic, conclusions regarding their impact on the employment prospects of participants. This paper argues that much of this confusion is due to a general lack of attention to qualitative differences between programmes. The paper develops a typology of active labour market programmes, differentiating between training and employment measures on the basis of their orientation to the labour market and argues that programmes with a strong orientation to the market are more likely to improve the job prospects of participants than those characterised by weak market linkages. That hypothesis is tested using the results of a survey of young participants in labour market programmes in Ireland. The analysis shows that programmes with strong linkages to the labour market both enhance the employment prospects of their participants and increase their earnings, even when we take account of relevant individual characteristics such as education and previous labour market experience.

Suggested Citation

  • O'Connell, Philip J. & MacGinnity, Fran, 1996. "What works, who works? The impact of active labour market programmes on the employment prospects of young people in Ireland," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 96-207, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzblpe:fsi96207
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    1. Main, Brian G M & Shelly, Michael A, 1990. "The Effectiveness of the Youth Training Scheme as a Manpower Policy," Economica, London School of Economics and Political Science, vol. 57(228), pages 495-514, November.
    2. Card, David & Sullivan, Daniel G, 1988. "Measuring the Effect of Subsidized Training Programs on Movements in and out of Employment," Econometrica, Econometric Society, vol. 56(3), pages 497-530, May.
    3. Torp, Hege, 1994. " The Impact of Training on Employment: Assessing a Norwegian Labour Market Programme," Scandinavian Journal of Economics, Wiley Blackwell, vol. 96(4), pages 531-550.
    4. Dolton, Peter J & Makepeace, Gerald H & Treble, John G, 1994. "The Youth Training Scheme and the School-to-Work Transition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 629-657, October.
    5. Cantillon, Sara & Curtis, John & FitzGerald, John, 1994. "Economic Perspectives for the Medium Term," Research Series, Economic and Social Research Institute (ESRI), number BMI84, June.
    6. de Koning, Jaap, 1993. "Measuring the Placement Effects of Two Wage-Subsidy Schemes for the Long-Term Unemployed," Empirical Economics, Springer, vol. 18(3), pages 447-468.
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