Do Active Labor Market Policies Increase Employment?

Released on by Mr.Marcello M. Estevão
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  • Do Active Labor Market Policies Increase Employment? Book Detail

  • Author : Mr.Marcello M. Estevão
  • Release Date : 2003-12-01
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 31
  • ISBN 13 : 1451875649
  • File Size : 7,7 MB
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Do Active Labor Market Policies Increase Employment? by Mr.Marcello M. Estevão PDF Summary

Book Description: Using panel data for 15 industrial countries, active labor market policies (ALMPs) are shown to have raised employment rates in the business sector in the 1990s, after controlling for many institutions, country-specific effects, and economic variables. Among such policies, direct subsidies to job creation were the most effective. ALMPs also affected employment rates by reducing real wages below levels allowed by technological growth, changes in the unemployment rate, and institutional and other economic factors. However, part of this wage moderation may be linked to a composition effect because policies were targeted to low-paid individuals. Whether ALMPs are cost-effective from a budgetary perspective remains to be determined, but they are certainly not substitutes for comprehensive institutional reforms.

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Active Labor Market Policies in Europe

Active Labor Market Policies in Europe

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Measures of Active Labor Market Policy - such as training, wage subsidies, public employment measures, and job search assistance - are widely used in European c