A social investment perspective on labour market policies for vulnerable groups

This article conceptualises the notion of “social investment’ within the context of social protection and active labour market policies. This paradigm is confronted to the neoliberal ‘making work pay’ paradigm and the conservative workfare doctrine build on the idea that a stronger work ethos needs to be inculcated through reduced rights and more duties. The social investment paradigm advocates generous social protection combined with enabling investments and is thus perfectly congruent with social inclusion objectives. The empirical analysis shows remarkably small effects of both types of policies in the past 15 years: ALMPs have had small positive effects on employment, but also on exits into inactivity. The most positive employment effect of ALMPs is a redistribution of employment opportunities towards older, female and less educated groups. The Re-inVEST research analyses in-depth participatory case studies of policies targeting disadvantaged groups in different European countries, using an ‘enriched’ social investment model, building on a human rights and capabilities approach. The findings indeed show very wide differences in quality – and a lot of room for improvement. In order to improve their effectiveness as well as inclusiveness, the right to decent ALMPs should be put on the policy agenda.

Are active labour market policies effective for the older unemployed? A meta-evaluation

We present a meta-evaluation of the literature on the impacts of active labour market policies for unemployed people over 50, extracting 82 impacts for analysis. The meta-evaluation includes only impact evaluations that examine both a group of beneficiaries and a control group of comparable non-beneficiaries. On average, we find that active policies have a slightly negative effect (−0.8 percentage points) on the probability of unemployed people over 50 finding a job and that this negative effect disappears 24 months after policy implementation. However, this effect is very different when disaggregated by policy type. Direct job creation policies have a clear negative effect (−3.9 percentage points), and training policies have a positive average effect, either in isolation (2.4 percentage points) or when combined with search assistance or counselling (1.7 percentage points). We also find slight differences by gender, with the effect of active policies being greater for women than for men. These results have important implications, given that the European Commission and the Organisation for Economic Co-operation and Development have made active policies the cornerstone of their efforts to improve the re-employment of older people. Our results support training policies, either in isolation or in combination with search assistance and counselling. The greatest impacts are obtained after 12 months of policy implementation.

From a Caring State to an Investing State. Stages of a Changing Welfare Model in Labour Market Policy

In this paper, we investigate the changing model of social security. The analyses are focusing on changes in labour market policies which have taken place in the countries of the European Union. With the critical review of scientific literature of welfare changes, we try to answer the next questions. What circumstances led to the shift from the welfare state focusing on welfare benefits and services to the generally accepted model of the activating? What reforms and what stages lead to the transformation of the welfare model especially in the area of labour market policies? How the earlier integration efforts, which had mainly focused on entitlement, was replaced with a market-based approach like social investment? The most important result of the critical analysis is the presentation of the policy model transfer between the states of the European Union and the steps of the reform process, which jeopardise the enforcement of the citizen's social rights. The first part of the study presents the theoretical framework for the transformation of the labour market policies, the key pillars of the welfare state and the term “activation state” and “investing state”. The second part examines the key features of five stages of changing model.

Evaluating The Impact of Subsidies in Reducing Unemployment in Romania

Having in mind the importance of effective Active Labour Market Policies (ALMPs) to boost employment, this paper aims to provide an impact study on employment for three types of active labour market measures implemented in Romania. These measures address companies who employ graduates of education institutions or unemployed persons over 45 years old or with only 3 years left before retirement.