Discussion or working paper
Active Labor Market Programs - Employment Gain or Fiscal Drain?
AbstractThis 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.
KeywordsActive labor market programs, short work, subsidies, training, workfare, activation, sanctions, job search assistance, intermediation, counselling, cost- effectiveness
JEL classificationJ08, J22, J23, J38, E24