Active labour market policy use in Luxembourg: evidence from a firm survey

Konstantinos Efstathiou,Cindy Veiga,Thomas Y Mathä,Ladislav Wintr

doi:10.1186/s12651-019-0262-3

Konstantinos Efstathiou, Cindy Veiga + Show 2 more

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https://doi.org/10.1186/s12651-019-0262-3

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Abstract

We analyse the use of active labour market policy (ALMP) measures by Luxembourg firms during the years of economic and financial crisis (2008–2009) and the subsequent European sovereign debt crisis (2010–2013). About 34% of Luxembourg firms used ALMPs between 2008 and 2013. Economy-wide, the use of ALMPs increased along both the extensive margin (more firms) and the intensive margin (more measures per firm). The likelihood that a firm hired with ALMPs is greater for firms that are large, multi-establishment, domestically oriented and firms facing strong demand and competition, with concerns about labour cost pressures.

Highlights

The main goal of active labour market policies (ALMPs) is to increase the employment opportunities for jobseekers and to improve matching between jobs and unemployed.1 In general, active labour market policy (ALMP) include job search assistance measures, training programs and subsidised jobs
We focus on the remaining active labour market policy (ALMP) measures managed by the Luxembourg employment agency ADEM (Agence pour le Development de l’Emploi)
4 We focus on ALMP measures managed by ADEM

Summary

Introduction

The main goal of active labour market policies (ALMPs) is to increase the employment opportunities for jobseekers and to improve matching between jobs (vacancies) and unemployed. In general, ALMPs include job search assistance measures, training programs and subsidised jobs. The main goal of active labour market policies (ALMPs) is to increase the employment opportunities for jobseekers and to improve matching between jobs (vacancies) and unemployed.. During the Great Recession unemployment in many European countries substantially increased and governments resorted to ALMPs to cushion the labour market outcomes of individuals out of work. Efstathiou et al (2018, in this journal) study STW during the Great Recession in Luxembourg. We focus on the remaining active labour market policy (ALMP) measures managed by the Luxembourg employment agency ADEM (Agence pour le Development de l’Emploi). During 2009–2014, the number of people involved in these ALMP measures rose continuously from about 3100 to 5000 (ADEM 2015), representing a rise of 0.4 percentage points to 1.3% of total employment

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