Effects of active labour-market policies on welfare state finances

2020 ◽  
Vol 36 (2) ◽  
pp. 200-216
Author(s):  
Hyejin Ko ◽  
Eunchong Bae

AbstractThis study seeks to determine the effectiveness of the active labour-market policies (ALMPs) of employment-oriented welfare states contribute to the financial soundness of welfare states. Even if they are insignificant, overall, the results show that ALMPs lead to higher employment rate and sounder public finances as could be expected by the central idea of employment-oriented welfare states. However, extending ALMPs does not always create a virtuous circle among government interventions, employment rate and fiscal soundness. That is, the results for employment and public finances depend on how the government intervenes in the labour market. We argue that the critical point goal should be to improve employability, not just to increase the employment rate.

Author(s):  
Vanessa Puig-Barrachina ◽  
Pol Giró ◽  
Lucía Artazcoz ◽  
Xavier Bartoll ◽  
Imma Cortés-Franch ◽  
...  

2021 ◽  
pp. 1-13
Author(s):  
Christer Hyggen ◽  
Janikke Solstad Vedeler

Using Work Training in Norway as a case, this article provides insight into motivation and structural factors that impact employer engagement with active labour market policies (ALMP) targeting young people. Drawing on mixed-methods data, we find a substantial proportion of Norwegian employers engage in Work Training. Both social responsibility and the economic interests of the company influence employers’ motivation for committing to Work Training. The findings reveal that the structural factors of business size and sector are crucial determinants of employer behaviour when it comes to hiring Work Training candidates. Although improved outreach activities by local job centres may be important, the article argues that efforts towards opening up sectors closed by sector-specific regulations on hiring, and increased awareness of structural constraints, are similarly important.


2005 ◽  
Vol 21 (1) ◽  
Author(s):  
Pierre Koning

Does the evaluation of active labour market policies have any future? Does the evaluation of active labour market policies have any future? The literature on the effectiveness of welfare-to-work services (i.e. schooling and job counseling) in the Netherlands provides a gloomy picture. First, only a few studies take proper account of selectivity and endogeneity biases. Second, the results of this (subset of) studies suggest that both schooling and counseling have only a modest, or no significant impact. In this article, I discuss various explanations for these findings. Furthermore, I describe various avenues for future research in this area, as well as the organization of more sound evaluation studies.


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