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Active Labor Market Policy Evaluations

Active Labor Market Policy Evaluations
Author: David E. Card
Publisher:
Total Pages: 35
Release: 2009
Genre: Unemployed
ISBN: 9783867880978

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This paper presents a meta-analysis of recent microeconometric evaluations of active labor market policies. Our sample contains 199 separate "program estimates"--Estimates of the impact of a particular program on a specific subgroup of participants - drawn from 97 studies conducted between 1995 and 2007. For about one-half of the sample we have both a short-term program estimate (for a one-year post-program horizon) and a medium- or long-term estimate (for 2 or 3 year horizons). We categorize the estimated post-program impacts as significantly positive, insignificant, or significantly negative. By this criterion we find that job search assistance programs are more likely to yield positive impacts, whereas public sector employment programs are less likely. Classroom and on-the-job training programs yield relatively positive impacts in the medium term, although in the short-term these programs often have insignificant or negative impacts. We also find that the outcome variable used to measure program impact matters. In particular, studies based on registered unemployment are more likely to yield positive program impacts than those based on other outcomes (like employment or earnings). On the other hand, neither the publication status of a study nor the use of a randomized design is related to the sign or significance of the corresponding program estimate. Finally, we use a subset of studies that focus on post-program employment to compare meta-analytic models for the "effect size" of a program estimate with models for the sign and significance of the estimated program effect. We find that the two approaches lead to very similar conclusions about the determinants of program impact.


Labor Market Policies and IMF Advice in Advanced Economies during the Great Recession

Labor Market Policies and IMF Advice in Advanced Economies during the Great Recession
Author: Mr.Olivier J Blanchard
Publisher: International Monetary Fund
Total Pages: 30
Release: 2013-03-29
Genre: Business & Economics
ISBN: 1484325486

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This paper does two things. First, it articulates what are the main implications of theoretical and empirical research for design of labor market policies and labor market institutions. Second, in this light, the paper analyzes the IMF’s labor market recommendations since the beginning of the crisis, both in general, and more specifically in program countries


World Development Report 2013

World Development Report 2013
Author: World Bank
Publisher: World Bank Publications
Total Pages: 423
Release: 2012-10-15
Genre: Business & Economics
ISBN: 0821395769

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Jobs provide higher earnings and better benefits as countries grow, but they are also a driver of development. Poverty falls as people work their way out of hardship and as jobs empowering women lead to greater investments in children. Efficiency increases as workers get better at what they do, as more productive jobs appear, and less productive ones disappear. Societies flourish as jobs bring together people from different ethnic and social backgrounds and provide alternatives to conflict. Jobs are thus more than a byproduct of economic growth. They are transformational —they are what we earn, what we do, and even who we are. High unemployment and unmet job expectations among youth are the most immediate concerns. But in many developing countries, where farming and self-employment are prevalent and safety nets are modest are best, unemployment rates can be low. In these countries, growth is seldom jobless. Most of their poor work long hours but simply cannot make ends meet. And the violation of basic rights is not uncommon. Therefore, the number of jobs is not all that matters: jobs with high development payoffs are needed. Confronted with these challenges, policy makers ask difficult questions. Should countries build their development strategies around growth, or should they focus on jobs? Can entrepreneurship be fostered, especially among the many microenterprises in developing countries, or are entrepreneurs born? Are greater investments in education and training a prerequisite for employability, or can skills be built through jobs? In times of major crises and structural shifts, should jobs, not just workers, be protected? And is there a risk that policies supporting job creation in one country will come at the expense of jobs in other countries? The World Development Report 2013: Jobs offers answers to these and other difficult questions by looking at jobs as drivers of development—not as derived labor demand—and by considering all types of jobs—not just formal wage employment. The Report provides a framework that cuts across sectors and shows that the best policy responses vary across countries, depending on their levels of development, endowments, demography, and institutions. Policy fundamentals matter in all cases, as they enable a vibrant private sector, the source of most jobs in the world. Labor policies can help as well, even if they are less critical than is often assumed. Development policies, from making smallholder farming viable to fostering functional cities to engaging in global markets, hold the key to success.


Firm Closures and Labor Market Policies in Europe

Firm Closures and Labor Market Policies in Europe
Author: Nikolaos Theodoropoulos
Publisher:
Total Pages: 0
Release: 2023
Genre:
ISBN:

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We examine the impact of active and passive labor market policies expenditures on the probability of re-employment, re-employment duration, unemployment duration, and re-employment wages in the case of job displacements due to firm closures. We use retrospective homogeneous longitudinal data from the Survey of Health, Ageing and Retirement in Europe and OECD data for 24 countries over the period 1985-2017 and we operate within alternative econometric frameworks. Our findings suggest that, in contrast to passive labor market policies, investing in active labor market policies increases the re-employment probability and the re-employment duration, reduces the risk of staying unemployed, and leads to higher wages at the lower end of the conditional wage distribution. Passive labor market policies estimates offset active labor market estimates and their interaction effect is always negative, but complementarities effects are found for Northern countries. By breaking down active and passive labor market policies into eight subcomponents, our results indicate that they have significant heterogeneous effects within and across labor market outcomes. Further, expenditures on labor market policies vary substantially across regions. For instance, active labor market policies have a stronger impact for Eastern countries, whereas passive labor market policies such as out-of-work income has a positive impact for Southern countries. Further, females are found to benefit more from active labor market policies in terms of re-employment probability, duration of re-employment, and risk of unemployment, but not in terms of wages, compared to males. Policymakers may consider the importance of implementing diverse reforms tailored to different countries and groups to enhance the effectiveness of labor market policies.


Designing Labor Market Institutions in Emerging and Developing Economies

Designing Labor Market Institutions in Emerging and Developing Economies
Author: Mr.Romain A Duval
Publisher: International Monetary Fund
Total Pages: 58
Release: 2019-05-21
Genre: Business & Economics
ISBN: 1498313264

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This paper discusses theoretical aspects and evidences related to designing labor market institutions in emerging market and developing economies. This note reviews the state of theory and evidence on the design of labor market institutions in a developing economy context and then reviews its consistency with actual labor market advice in a selected set of emerging and developing economies. The focus is mainly on three broad sets of institutions that matter for both workers’ protection and labor market efficiency: employment protection, unemployment insurance and social assistance, minimum wages and collective bargaining. Text mining techniques are used to identify IMF recommendations in these areas in Article IV Reports for 30 emerging and frontier economies over 2005–2016. This note has provided a critical review of the literature on the design of labor market institutions in emerging and developing market economies, and benchmarked the advice featured in IMF recommendations for 30 emerging market and frontier economies against the tentative conclusions from the literature.


The Effectiveness of Active Labor Market Policies

The Effectiveness of Active Labor Market Policies
Author: Melvin Vooren
Publisher:
Total Pages: 0
Release: 2019
Genre:
ISBN:

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This paper provides a meta-analysis of microeconometric evaluation studies on the effectiveness of active labor market policies. The analysis is built upon a systematically assembled data set of causal impact estimates from 57 experimental and quasi-experimental studies, providing 654 estimates published between January 1990 and December 2017. We distinguish between the short and longer term impacts in our analysis; at 6, 12, 24, and 36 months after program start. After correcting for publication bias and country-specific macroeconomic characteristics, subsidized labor and public employment programs have negative short-term impacts, which gradually turn positive in the longer run. Schemes with enhanced services including job-search assistance and training programs do not have these negative short-term effects, and stay positive from 6 until 36 months after program start.