Kiel Working Papers, Kiel Institute for World Economics
No 1785:
Active Labor Market Programs - Employment Gain or Fiscal Drain?
Alessio J. G. Brown and Johannes Koettl
Abstract: This paper provides a new perspective in classifying ALMPs
depending on their main objective, also in light of their relevance and
cost-effectiveness during normal times, during a crisis, and during
recovery. We distinguish ALMPs that provide incentives for retaining
employment, incentives for creating employment, incentives for seeking and
keeping a job, incentives for human capital enhancement, and improved labor
market matching. We will discuss their direct and indirect effects
determining their cost- effectiveness as well as to provide examples which
may provide lessons to learn for transition and developing countries. This
paper provides a systematic overview of how, why, when and to what extent
specific policies are effective
Keywords: Active labor market programs, short work, subsidies, training, workfare, activation, sanctions, job search assistance, intermediation, counselling, cost- effectiveness; (follow links to similar papers)
JEL-Codes: J08,; J22,; J23,; J38,; E24; (follow links to similar papers)
46 pages, July 2012
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