Working Paper: CEPR ID: DP4707
Authors: Jan Boone; Jan C. van Ours
Abstract: We present a theoretical and empirical analysis of different types of active labour market policies (ALMP). In our empirical analysis we use data on 20 OECD countries covering the time period 1985-99. We find that labour market training is the most effective program to bring down unemployment. Public employment services have some impact while subsidized jobs are not effective at all. Our theory considers ALMP in the context of a search-matching model.
Keywords: active labour market programmes; public employment services; subsidized jobs; training; unemployment
JEL Codes: H55; J65; J68
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Labor Market Training (J48) | Reduced Unemployment (J68) |
| Labor Market Training (J48) | Increased Employment-Population Rate (J68) |
| PES Expenditures (H59) | Reduced Unemployment (J68) |
| PES Expenditures (H59) | No effect on Employment-Population Rate (J49) |
| Subsidized Jobs (J68) | No significant effect on Unemployment (J65) |
| Subsidized Jobs (J68) | No significant effect on Employment-Population Rate (F66) |