DP4707 Effective Active Labour Market Policies

Author(s): Jan Boone, Jan C. van Ours
Publication Date: October 2004
Keyword(s): active labour market programmes, public employment services, subsidized jobs, training, unemployment
JEL(s): H55, J65, J68
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=4707

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.