Publication: Active Labor Market Programs : How, Why, When, and To What Extent are they Effective?
Date
2012-12
ISSN
Published
2012-12
Author(s)
Abstract
Active labor market programs (ALMPs) aim
to keep workers employed, bring them into employment,
increase their productivity and earnings, and improve the
functioning of labor markets. ALMPs to retain employment,
for example, work-sharing schemes, should be used only for
short periods during severe recessions. More cost-effective
and useful during recoveries are ALMPs to create employment,
which strengthen outsiders labor market attachment and
support the outflow out of unemployment. Training programs
are especially effective over the long term, particularly
the more they target disadvantaged outsiders. ALMPs that
improve labor market matching are highly beneficial, but
effective only in the short run. ALMPs in general might be
more cost effective over the long term (3-10 years) and some
may even be self-financing, suggesting that long-term
evaluations are needed to better ascertain the impact of
individual policies.
Link to Data Set
Citation
“Brown, Alessio J.G.; Koettl, Johannes. 2012. Active Labor Market Programs : How, Why, When, and To What Extent are they Effective?. Europe and Central Asia knowledge brief;issue no. 58. © World Bank, Washington, DC. http://hdl.handle.net/10986/17053 License: CC BY 3.0 IGO.”