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Alessio J. G. Brown Homepage ,
Johannes Koettl

Active Labor Market Programs - Employment Gain or Fiscal Drain?

  • 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

  • JEL classification

    J08, J22, J23, J38, E24

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