scholarly journals Evaluation of the Effectiveness of Employment Programme on Young Unemployed People

2021 ◽  
Vol 32 (1) ◽  
pp. 60-69
Author(s):  
Laura Južnik Rotar

Youth unemployment is of paramount concern for the European Union. Young people are facing potentially slow and difficult transitions into stable jobs. What optimally supports young people on the labour market poses a challenging question for economic policy makers. Active labour market policies can be beneficial to young unemployed people. The aim of active labour market policy is to improve employability of the unemployed. The consequences of an overly generous welfare state can be a reduction in motivation to work. The effectiveness of employment programmes is therefore a crucial step in the process. This paper aims to estimate the treatment effect of subsidized employment programmes on young Dutch unemployed people using difference in differences propensity score matching. We test whether the effects of subsidized employment programmes for young Dutch unemployed people are positive and strong in both the short and long term on the probability of re-employment and on the probability of participation in the regular educational system in comparison with the outcome produced in the event that an individual would continue seeking employment as an unemployed person. The probability of re-employment in short-term circumstances is positive, but small. Whereas with long-term examples (two years after the programme start) the probability is negative. Alternatively, the probability of participation in regular educational systems is positive in the short-term as well as in the long-term, but evidently decreases in the long-term. Welfare reforms undertaken in the Netherlands are directed towards enhancing efficiency. The role of social partners in social security administrations is reduced and the reforms are intended to promote reintegration of people who are out of work. There is a general agreement that the Netherlands is going in the right direction by giving priority to work and study over benefits, as it has become evident that generous social benefits make employment policies inefficient.

Sociologija ◽  
2012 ◽  
Vol 54 (2) ◽  
pp. 287-302
Author(s):  
Velinka Tomic

The population of young people in Bosnia and Herzegovina is confronted with many challenges - economic, institutional and social. The participation of young people in education drops significantly after they turn 18, while entry into the labour market happens around 20 years of age. Unemployment mostly affects people with lower education levels, such as those with a secondary school degree or qualified workers. The youth unemployment rate, the most commonly used indicator of the disadvantages faced by young people in the labour market, is very high in Bosnia and Herzegovina. The single most significant factor affecting the labour market experiences of young people is the extensive informal economy in the country. Active Labour Market Policy for young people attempts to reduce the problems faced by young people in their attempts to find decent work once they enter the labour market. They attempt to remedy failures of the educational system and to improve the efficiency of labour market matching. The percentage of unemployed youth is of great importance because the youth are in the age when the ability and motivation for work are at their peak. Any society that excludes half of its population from the sphere of work acts against public interest.


2019 ◽  
Vol 10 (9) ◽  
pp. 910-918
Author(s):  
Lucia Svabova ◽  
◽  
Vladimir Borik ◽  
Marek Durica ◽  
Johanna Grudin ◽  
...  

Active labour market policy interventions are vide used tool of a government against unemployment. One of the most frequently used intervention for young jobseekers in Slovakia is a Contribution for Graduate practice. This measure is intended for young unemployed jobseekers as a tool of gaining first contact with the open labour market and with potential employer and gaining first work experiences. In this paper we present a qualitative survey of Graduate practice that was made as an ex-post evaluation of this intervention by its participants in Slovakia. This evaluation of the intervention was carried out at the request of the European Commission not only in Slovakia but also in several countries of the European Union. The qualitative evaluation, as a part of this rigorous intervention evaluation, provides feedback from the real intervention participants and brings some suggestions to improve the parameters and conditions of Graduate practice intervention and its realization. These improvements are useful not only for participants themselves, for companies in which young graduates are employed but also for the state budget in the form of returned or saved invested funds because of better functioning of the intervention. Based on the results of this feedback from its real participants, some parameters, conditions and details of the Graduate practice intervention have been changed and added in Slovakia.


2018 ◽  
pp. 59-90

This chapter examines countries' performance regarding youth unemployment. Although the labour market situation of young people has started to improve in a number of countries since the Great Recession of 2007–8, youth unemployment still remains very high across Europe. High youth unemployment rates reflect young people's difficulties in securing employment, or the inefficiency of the labour market. Germany and the Netherlands have established the most effective institutions to achieve a high integration of 15–19 year-olds in education and employment. Indeed, both Germany and the Netherlands are amongst the highest performing countries in the EU for making sure their young people are in employment. Austria and Denmark also achieve good youth labour market and employment outcomes. Meanwhile, countries like France and the UK try to facilitate school-to-work (STW) transitions by lowering labour costs through subsidies or low employment protection.


2019 ◽  
Vol 49 (3) ◽  
pp. 483-506 ◽  
Author(s):  
LUC BENDA ◽  
FERRY KOSTER ◽  
ROMKE VAN DER VEEN

AbstractEvaluation studies of active labour market policy show different activation measures generate contradictory results. In the present study, we argue that these contradictory results are due to the fact that the outcomes of activation measures depend on other institutions. The outcome measure in this study is the long-term unemployment rate. Two labour market institutions are of special interest in this context: namely, employment protection and unemployment benefits. Both institutions, depending on their design, may either increase or decrease the effectiveness of active labour market policies in lowering long-term unemployment. Based on an analysis of macro-level data on 20 countries over a period of 16 years, our results show that employment protection strictness and unemployment benefit generosity interact with the way in which active labour market policies relate to long-term unemployment. Our results also indicate that, depending on the measure used, active labour market policies fit either in a flexible or in a coordinated labour market. This suggests that active labour market policies can adhere to both institutional logics, which are encapsulated in different types of measures.


Author(s):  
Giorgio Liotti

AbstractThe rise of youth unemployment has been one of the most serious problems which policymakers have had to deal with over the last two decades. Neoclassical economic theory suggests that the deregulation (i.e. higher flexibility) of the labour market stimulates firms to hire young people and—therefore—reduces youth unemployment. The aim of this study is to empirically test the validity of this hypothesis, analysing data on youth unemployment and labour market regulation index (LMRI) for 28 European countries in the period between 2000 and 2018. The empirical results—using two different econometric techniques (time and fixed effects that allows to take into account the presence of heterogeneity of countries in the model and pooling mean group (PMG) estimator providing results about the short and long run relationship between LMRI and youth unemployment)—do not provide evidence in support of the neoclassical hypothesis. In particular, the effect of higher flexibility of the labour market is negative and statistically significant (at 1%) only when a dummy variable for the Eastern country group is included in the model. Vice-versa, the paper shows that higher economic growth and higher investment in active labour market policy represent the key variables to reduce the youth unemployment. In conclusion, the paper raises many doubts that the introduction of flexibility measures in itself can represent a useful tool to counteract the increase of youth unemployment in Europe.


2021 ◽  
Vol 5 (2, special issue) ◽  
pp. 212-224
Author(s):  
Bashkim Bellaqa ◽  
Besim Gollopeni

The main aim of this study is to analyse the employment and unemployment rates in the Western Balkans, looking particularly at youth (aged 18–24 years) unemployment in Kosovo. The results of the study show that unemployment in this age group is high and that labour market policies are also not appropriate. The empirical study was conducted during the pandemic (2020), but statistics for study needs were used from the period 2001–2019. It involved young people aged 18–24 and used data from various local and international institutions regarding the labour market for young people, labour market policy, etc. The study shows that in Kosovo, 48.7% of young people aged 18–24 are unemployed and that the most pronounced unemployment is among women. A significant proportion of the young population is unemployed (46.4%) and youth unemployment among females is higher (53.6%) compared to males (42.9%) (Kosovo Agency of Statistics, 2020b). Kosovo’s problem with youth unemployment is the result of poor economic development as well as inefficient labour market policies. The study recommends that policymakers develop sustainable and effective policies that will lead to stability in youth employment and improve the labour market performance. These policies should help organizations and businesses to increase the number of employees, but should also create long-term employment stability. Furthermore, a critical appraisal is necessary to avoid youth unemployment, instability in youth employment and labour market instability as a whole


2020 ◽  
Vol 1 ◽  
pp. 128-133
Author(s):  
Veronika Ladňáková ◽  
Martina Špániková

Long-term unemployment is a persistent problem for Slovakia. Despite the number of long-term unemployed people in Slovakia has decreased significantly in recent years, it still presents a high proportion of the total unemployment rate. According to the European Commission Report about Slovakia in 2019, while the long-term unemployment rate fell to 4% on a year-on-year basis, it is still well above the EU average of 2.9%. Although growth is expected in the upcoming years, spending on active labour market policies in Slovakia has been one of the lowest in the EU. The study aims at investigating the current situation of long-term unemployment among risk groups in the labour market in Slovakia and labour market measures taken to curb it. It also examines the consequences of unemployment on the family and to seek solutions for the long-term unemployment in Slovakia. The data has been analyzed by a statistical method and proposes solutions to reduce long-term unemployment in the northern part of Slovakia


2018 ◽  
Vol 9 (1) ◽  
pp. 55-64
Author(s):  
Laura Južnik Rotar

Abstract Background: Labour market policy aims to fight against unemployment and to raise employment. With this study we attempt to contribute to the evidence of the effectiveness of active labour market policy. Objectives: In the empirical part of the paper we aim to research the relations between the labour market policies and macroeconomic variables. Methods/Approach: In order to distinguish the effects of expenditures for labour market policies on unemployment rate, we separately analysed the effects of expenditures for active labour market policies and the effects of expenditures for passive labour market policies on unemployment rate using panel regression analysis. Results: The expenditures for active labour market policies have negative and statistically significant effect on unemployment rate, whereas the expenditures for passive labour market policies have positive and statistically significant effect on unemployment rate. Conclusions: Not only the activation strategies with benefit conditioning, but also encouraging and enabling unemployed person to actively approach in searching for a job should be implemented. The implementation of activation strategies which create favourable conditions for unemployed people to develop their skills, fulfil their potential, continuously maintain contacts with the employers and actively participate in the society should be supported.


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