Active Labor Market Programs : How, Why, When, and To What Extent are they Effective?

Active labor market programs (ALMPs) aim to keep workers employed, bring them into employment, increase their productivity and earnings, and improve the functioning of labor markets. ALMPs to retain employment, for example, work-sharing schemes, should be used only for short periods during severe recessions. More cost-effective and useful during recoveries are ALMPs to create employment, which strengthen outsiders labor market attachment and support the outflow out of unemployment. Training programs are especially effective over the long term, particularly the more they target disadvantaged outsiders. ALMPs that improve labor market matching are highly beneficial, but effective only in the short run. ALMPs in general might be more cost effective over the long term (3-10 years) and some may even be self-financing, suggesting that long-term evaluations are needed to better ascertain the impact of individual policies.

Bibliographic Details

Main Authors:	Brown, Alessio J.G., Koettl, Johannes
Language:	English en_US
Published:	World Bank, Washington, DC 2012-12
Subjects:	ACTIVE LABOR, ACTIVE LABOR MARKET, ACTIVE LABOR MARKET PROGRAMS, ACTIVE LABOR MARKETS, ATTRITION, CLASSROOM TRAINING, CRISES, DEADWEIGHT, DISADVANTAGED WORKERS, DISPLACEMENT, ECONOMIC CRISES, ECONOMIC RECOVERY, EFFICIENCY OF LABOR, EMPLOYABILITY, EMPLOYMENT EFFECTS, EMPLOYMENT GROWTH, EMPLOYMENT IMPACTS, EMPLOYMENT INCENTIVES, EMPLOYMENT PROSPECTS, EMPLOYMENT SUBSIDIES, ENTREPRENEURSHIP, EXPENDITURES, HIGH UNEMPLOYMENT, HUMAN CAPITAL, INCOME, INCOME SUPPORT, JOB SEARCH, JOB SEARCH ASSISTANCE, JOBS, LABOR COSTS, LABOR DEMAND, LABOR MARKET CONDITIONS, LABOR MARKET OUTCOMES, LABOR MARKET POLICIES, LABOR MARKETS, LABOR REALLOCATION, LABOR SUPPLY, LONG-TERM UNEMPLOYMENT, LOW EMPLOYMENT, MASSIVE LAYOFFS, NET EMPLOYMENT, OLDER WORKERS, ON-THE-JOB TRAINING, PASSIVE LABOR, PRODUCTIVITY, PROGRAM DURATION, PUBLIC WORKS, PUBLIC WORKS PROGRAMS, PUBLIC WORKS SCHEMES, REEMPLOYMENT PROBABILITY, REGULAR EMPLOYMENT, SAFETY, SAFETY NET, SAFETY NETS, SHORT-TERM UNEMPLOYMENT, SKILLED EMPLOYEES, SKILLS DEVELOPMENT, SUBSIDIZED EMPLOYMENT, SUBSTITUTE, TOTAL EMPLOYMENT, TRAINING PROGRAMS, UNEMPLOYED, UNEMPLOYED WORKER, UNEMPLOYED WORKERS, UNEMPLOYMENT, UNEMPLOYMENT INSURANCE, UNEMPLOYMENT RATES, UNEMPLOYMENT SPELL, UNEMPLOYMENT SPELLS, UNSKILLED WORKERS, WAGE SUBSIDIES, WAGES, WORK EXPERIENCE, WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2012/12/17480589/active-labor-market-programs-extent-effective https://hdl.handle.net/10986/17053
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