Active Labour Market Programmes Research Articles

Assessing the effects of population-level political, economic and social exposures, interventions and policies on inclusive economy outcomes for health equity in high-income countries: a systematic review of reviews

BackgroundA fairer economy is increasingly recognised as crucial for tackling widening social, economic and health inequalities within society. However, which actions have been evaluated for their impact on inclusive economy outcomes is yet unknown.ObjectiveIdentify the effects of political, economic and social exposures, interventions and policies on inclusive economy (IE) outcomes in high-income countries, by systematically reviewing the review-level evidence.MethodsWe conducted a review of reviews; searching databases (May 2020) EconLit, Web of Science, Sociological s, ASSIA, International Bibliography of the Social Sciences, Public Health Database, Embase and MEDLINE; and registries PROSPERO, Campbell Collaboration and EPPI Centre (February 2021) and grey literature (August/September 2020). We aimed to identify reviews which examined social, political and/or economic exposures, interventions and policies in relation to two IE outcome domains: (i) equitable distribution of the benefits of the economy and (ii) equitable access to the resources needed to participate in the economy. Reviews had to include primary studies which compared IE outcomes within or between groups. Quality was assessed using a modified version of AMSTAR-2 and data synthesised informed by SWiM principles.ResultsWe identified 19 reviews for inclusion, most of which were low quality, as was the underlying primary evidence. Most reviews (n = 14) had outcomes relating to the benefits of the economy (rather than access to resources) and examined a limited set of interventions, primarily active labour market programmes and social security. There was limited high-quality review evidence to draw upon to identify effects on IE outcomes. Most reviews focused on disadvantaged groups and did not consider equity impacts.ConclusionsReview-level evidence is sparse and focuses on ‘corrective’ approaches. Future reviews should examine a diverse set of ‘upstream’ actions intended to be inclusive ‘by design’ and consider a wider range of outcomes, with particular attention to socioeconomic inequalities.

Learning a shared language – theoretical concepts as tools for enhanced well-being in social work interventions

ABSTRACT The aim of this article is to explore the opportunities of using theoretical concepts as way of gaining a shared language for people participating in an active labour market program (ALMP). The investigated programme offered vocational education preparing for work in eldercare to unemployed individuals. Data was collected through interviews with ten participants and two teachers, and through observations. All participants had experienced social problems such as homelessness, indebtedness, criminality. Half of the group had Swedish as their first language. In the other half of the group, several languages were spoken. Some spoke Swedish without difficulties, whereas others had big difficulties speaking, reading, and understanding Swedish. The programme included an introduction to Aaron Antonovsky’s theory Sense of Coherence (SOC). This article reports from, and reflects on, the acquisition of a theoretical vocabulary serving as a pedagogical short-cut for the participants. By filling the concept of SOC with meaning, participants got access to a new language, a language that was surely not ‘plain Swedish’, but rather a language of abstract theory. The pedagogical work created literacy – and a shared platform for increased understanding of one’s own life story and current situation. Using the empirical case of an ALMP serves as an attempt to cross-fertilize the theory of SOC and educational ideas in a way that is not conventional in social work research. We suggest that introducing a theoretical language relevant for one’s own personal story might enhance well-being and thus prime learning in social work interventions.

Flexicurity, education and optimal labour market policies

AbstractThe paper provides a theoretical rationale for flexicurity policies, consisting of low employment protection, generous unemployment insurance and active labour market programmes. Education efforts give access to high productivity firms, more likely to survive and thus exposing less their workers to unemployment risk. Activation programmes support reallocation from risky and unproductive to safer and more productive firms, reducing unemployment. Low employment protection can provide incentives for self‐insurance against unemployment risk through education, mitigating the moral hazard cost of unemployment insurance and activation programmes. The paper identifies conditions for flexicurity to be optimal and confronts theoretical predictions to the data.

Does previous sickness absence affect work participation after vocational labour market training? A difference-in-differences propensity score matching approach.

Reduced work ability is relatively common among job seekers and it can hinder future labour market attachment. A commonly used measure to increase employability is the use of active labour market programmes. While vocational labour market training (LMT) has been shown to be an effective way to increase work participation among job seekers, there is still uncertainty about how LMT works in different population groups, for example, among persons with a work disability history. We used nationally representative Finnish register data on 16 062 LMT participants in 2008-2015 aged 25-59 with a history of sickness absence (SA) and propensity score matched participants without such history. For matching, we used information on sociodemographic and work-related factors. We used difference-in-differences analysis to investigate the differential changes in work participation before and after LMT between those with and those without SA history. Having a history of SA was associated with a lower gain in work participation after LMT, but the magnitude varied by sex, employment history and follow-up time. In women, having a history of SA contributed to 3.9-6.2 percentage points smaller increase in work participation 1-3 years after LMT, depending on the employment history. In men, the corresponding numbers were 2.0-4.3 percentage points. The results were more pronounced if the SA was due to mental disorders. The results indicate that work disability, especially due to mental disorders, can hamper work participation after LMT and should be considered when planning employment-enhancing measures for job seekers.

The impact of social impact bond financing

AbstractSocial impact bonds (SIBs), also known as Pay for Success, are an innovation in Payment by Results contracting. Investors finance programs and are repaid based on the “SIB effect,” which includes changes in outcomes attributable to financing. We generate a quantitative estimate of this part of the SIB effect for two active labor market programs in the Netherlands and Switzerland. Comparing program impacts within providers using SIB and non‐SIB contracts suggests financing has positive impacts on public benefit receipt, employment, and income. Qualitative research suggests this is because SIB contracts increased pressure for all involved parties, leading to the institutionalization of selection and greater resources for SIB‐financed services. Contracts with high pressure, like SIBs, may compromise both performance requirements and the potential to measure performance. We examine the implications of these findings in relation to agency and stewardship theories and highlight the significance of SIBs as multilateral as opposed to bilateral contracts.

Preventing a Scarring Start into the Labor Market: Integration Strategies for Young Persons with Disabilities.

Sociodemographic and structural conditions have consequences for the labor market participation of young persons with disabilities (YPWD) in vocational rehabilitation (VR). As the type of program determines the labor market chances, we analyze the processes of selecting active labor market programs (ALMP) in VR. Which factors determine the allocation to (1) programs in general and (2) moreover, the allocation to specific programs? We conduct logistic (1) and multinomial regression (2) using register data of the German Federal Employment Agency. Besides variables on the micro level, we control for a wide range of structural and organizational influences. The sample comprises VR and employment biographies of 255,009 YPWD accepted to VR between 2010 and 2015. Program participation is restricted to start 180 days after VR acceptance. Sociodemographic factors, like age and the status before entering VR as well as the local apprenticeship market as a structural condition, highly influence the general allocation to ALMP. For the allocation to specific ALMP, sociodemographics (age, education, type of disability, status before entering VR) are highly relevant. Furthermore, structural conditions (regional structure of subsidized vocational training and of the apprenticeship market as well as local work possibilities on a special labor market for PWD) and - to a lesser extent - re-organization processes at the FEA (NEO, VR cohort) are important determinants. (Automatic) paths into VR programs for especially persons with mental disabilities in sheltered workshop are clearly shown. Furthermore, it is somewhat questionable that YPWD participate more often in sheltered workshops in regions where sheltered work possibilities are more common, as well as where NEO was implemented locally; and participate more often in company-external vocational training where VR service providers are commissioned to a greater extent.

The impact of periodic interviews on unemployment duration: Evidence from the 2017 Finnish reform

AbstractIn 2017, a Finnish policy reform intensified the Public Employment Services' practice of periodically interviewing unemployed jobseekers. This study used high‐quality administrative data to analyse the effect of interviews on unemployment duration. We used a difference‐in‐differences approach that exploited regional variations in treatment intensity. Our results show that a 10 percentage point increase in interview probability increased the monthly hazard rate of employment by 3.1 per cent, with the effect being strongest among jobseekers aged 25–34 and jobseekers with a low education level. Also, our results demonstrate a strong effect on participation in active labour market programmes.

‘What about me?’: An analysis of employers’ engagement with employment service providers in Australia

This paper examines the under-explored demand-side of active labour market programmes that aim to transition people without jobs into employment. The paper's contribution centres on understanding the benefits that government-funded employment services can offer to employers and how they can work with employment service providers to leverage these. Drawing on in-depth qualitative interviews with employers in Australia, our findings extend pre-existing concepts of employer engagement by illustrating the human resource, corporate social responsibility, and financial benefits to employers of engaging with employment services and how firm size affects their engagement. The findings offer improvements to policymaking and practice to facilitate the effectiveness of employment services in Australia and elsewhere.

Activation by the ‘Magic Wand’ – Does it Work?

Can activation programs be considered a ‘magic wand’ that triggers a change of incentives, with little or no costs, and produces real gains in terms of improved job-finding rates? The paper reviews the literature on the experience of OECD countries with such programs in five areas: strengthening job-search requirements, compulsory participation in active labor market programs, stricter monitoring, and imposing sanctions. Programs are judged in terms of duration of unemployment, probability of finding a job, and post-unemployment outcomes such as the level of wages and quality of jobs. Our review finds strong evidence that activation programs can increase the job-finding rates of individuals receiving unemployment or social assistance benefits. At the same time, it cautions that programs may have adverse side effects, ranging from increased exits into inactivity to lower quality of post-unemployment jobs, as well as negative indirect effects on the job prospects of non-participants.

Overeducation wage penalty for university graduates: evidence from the MENA region using machine learning techniques

ABSTRACT This study estimates the causal effect of overeducation on wages using cross-sectional survey data from three countries in the Middle East and North Africa region. The Labour Market Panel Survey data from Jordan in 2016, Tunisia in 2014, and Egypt in 2012 and 2018 are used. Overeducation occurs when an individual works in a job that requires someone with less education. Our analysis focuses on employees with high school or college education in paid-wage jobs. Overeducation in the data is self-reported. Between 10% and 50% of the samples in the various countries are overeducated, with overeducation being more pronounced among high school than college-educated people. The novel causal forest method as well as the nearest neighbour and propensity score matching methods are used to estimate the over-education wage penalty. The overeducation job mismatch wage penalty is significant in both total wage and basic wage. The size of the penalty, however, varies considerably between the three countries and is negatively associated with the prevalence of overeducation in the job market in each country. The penalty in total wage ranges from 17% in Egypt in 2012 to approximately 50% in Tunisia. High school graduates have smaller penalties. We recommend policies such as conducting more active labour market programmes to reduce the stock of mismatched workforce, enhancing job search services to improve the quality of matching in new vacancies, and following strategies that motivate entrepreneurship.

The effects of more intensive counseling for disadvantaged unemployed youth

Abstract Many European countries are facing the key challenge of integrating low-skilled jobless young people into the labor market. From 2018 to 2020, the Public Employment Service (PES) in Vienna tested a new model of intensified support (“case management”). The target group consisted of young unemployed persons with low formal qualifications who were drawing on social assistance. Based on the pilot project and a propensity matching approach, we show that the increase in staff significantly increased the intensity of the counseling. It led to an increase in job proposals and active labor market program participation, as well as sanctions in the form of benefit suspensions for failure to keep PES appointments. In line with the goal, more of the young people were encouraged to take part in training and further education instead of being quickly placed in an unskilled job. However, in the three-year follow-up period, the intensified counseling did not (yet) have a significant effect on the overall extent of integration into employment. Regarding post-unemployment job quality, we find no effects on wages at the start of a job.

Training in the age of liberalization and crisis: Understanding the learning experiences of young Active Labour Market Programme Participants

AbstractVocational Training has been a prominent aspect of Active Labour Market Policy (ALMP) across EU member states, as part of efforts to boost the employability and human capital of young unemployed people and address new social risks arising within knowledge economies. However, young people's learning experiences of these programmes, and how these shape their early formative experiences in the labour market is underexplored. We address this gap by presenting new analysis of an extensive qualitative dataset, involving interviews with participants in Greece's Continuous Vocational Training (CVET) Program. Drawing on Unwin and Fuller's influential theory of restrictive and expansive learning environments which was developed through examination of formal apprenticeship programmes, we explore the extent to which these short‐term vocational training programs provide meaningful learning and work experiences for young people. We show that vocational training facilitated through ALMPs is often experienced as restrictive, underpinned by a lack of meaningful training, occupation‐specific skills, supportive guidance and quality employment prospects. Furthermore, we show how ALMPs in such contexts not only fail to support young people, but they also reinforce and legitimize precarious work practices by socializing the younger generation of workers into low‐pay, temporary and routine jobs.

Resistance of young working-class women in Swiss activation labour market programmes

ABSTRACT Recent studies on active labour-market programmes have shown that welfare beneficiaries exercise agency to resist normative expectations and institutional demands leading to low-paid jobs. This study examines young native and immigrant working-class women’s resistance to labour-market activation policies in French-speaking Switzerland. Using ethnographic data from two activation programmes and interviews with young unemployed women, the results show that the gendered organisation of the programmes contributes to making women and their work invisible. The young native women use their invisibility strategically to develop discreet resistance and fight for their respectability. Immigrant women are more compliant but exercise forms of political agency for emancipation. Using the approach of particularistic resistance, we show that resistance within welfare institutions is not only a way to express individual dissatisfaction but also a form of agency and individual political action. Future studies should examine welfare beneficiaries’ agency in navigating and resisting welfare policies.

Why is impact measurement abandoned in practice? Evidence use in evaluation and contracting for five European Social Impact Bonds

Despite broad consensus on the importance of measuring “impact,” the term is not always understood as estimating counterfactual and causal estimates. We examine a type of public sector financing, “Social Impact Bonds,” a scheme where investors front money for public services, with repayment conditional on impact. We examine five cases in four European countries of Social Impact Bonds financing active labor market programs, testing the claim that Social Impact Bonds would move counterfactual causal impact evaluation to the heart of policy. We examine first how evidence was integrated in contracts, second the overall evidence generated and third, given that neither contracts nor evaluations used counterfactual definitions of impact, we explore stakeholders’ perspectives to better understand the reasons why. We find that although most stakeholders wanted the Social Impact Bonds to generate impact estimates, beliefs about public service reform, incentives, and the logic of experimentation led to the acceptance of non-causal definitions.

Danish Flexicurity: Rights and Duties

Denmark is one of the richest countries in the world and achieves this in combination with low inequality, low unemployment, and high-income security. This performance is often attributed to the Danish labor market model characterized by what has become known as flexicurity. This essay describes and evaluates Danish flexicurity. The Danish experience shows that flexicurity in itself, that is, flexible hiring and firing rules for firms combined with high income security for workers, is insufficient for successful outcomes. The flexicurity policy also needs to include comprehensive active labor market programs (ALMPs) with compulsory participation for recipients of unemployment compensation. Denmark spends more on active labor market programs than any other OECD country. We review theory showing how ALMPs can mitigate adverse selection and moral hazard problems associated with high income security and review empirical evidence on the effectiveness of ALMPs from the ongoing Danish policy evaluation, which includes a systematic use of randomized experiments. We also discuss the aptness of flexicurity to meet challenges from globalization, automation, and immigration and the trade-offs that the United States (or other countries) would face in adopting a flexicurity policy.

The 2009-2014 economic crisis and deaths by suicide in Portugal: time series analysis

Abstract Introduction Population health, including mental health, is influenced by its socioeconomic context. After the 2008 global economic crisis, studies found contradicting results: some showed an increased risk for self-harm and suicidal behavior, while others found the opposite association. To the best of our knowledge, there is no research in Portugal on the subject. Thus, our aim was to estimate the impact of the Portuguese economic crisis of 2009-2014 on the death rate by suicide and self-inflicted injury in Portugal. Methods A retrospective ecological study with an interrupted time series analysis of deaths by suicide and self-inflicted injury (data from the National Statistics Institute) in mainland Portugal, in 2003-2014, was performed. Resident population data was also retrieved from the National Statistics Institute. Binomial negative generalized linear models were used to compare rates and trends before (2003-2008) and during (2009-2014) the economic crisis. All rates were stratified and adjusted for seasonality. Results The economic crisis was associated with 13% a step increase in the death rate due to suicide and self-inflicted injury, with unemployment playing a significant mediating role, being negatively associated to the outcome. Differences between groups exist, with males, working-age groups and the North and Centre regions being the most impacted, globally. Conclusions Economic downturns pose risks for suicidal behavior. Unemployment may play a role in this association. Employment protection schemes can prevent this impact, so urgent action is needed to prevent economic crisis leading to additional suicides, especially in the context of the COVID-19 pandemic and the economic crisis it caused. Key messages • The Portuguese economic crisis of 2009-2014 was associated with an increased death rate due to suicide, especially in males, working-age groups and the North and Centre regions. • Unemployment may play a role in this association, and active labour market programmes can prevent the negative impacts of economic crisis leading to additional suicides.

Совершенствование организационной и финансовой моделей содействия занятости в России

The article discusses the basics of employment policy in Russia: the organizational model in terms of delineation of responsibilities between stakeholders, and the financial model in terms of the two basic directions of employment policy — passive, in the form of cash benefits to the unemployed, and active, in the form of programs of employment assistance. The authors show that the Russian model of unemployment benefits has lost its original intent: the benefits have become an analogue of social support, since they are virtually unrelated to previous earnings. The unemployment benefit is, in fact, counter-productive, since it contributes to the growth of registered unemployment (including the so-called “professional unemployment”, when the unemployed are not motivated to find a job). As a result, the resources of the Employment Service are wasted and the prospects of its modernization are put at risk. Regarding active employment programs, the authors highlight the following problem: while the implementation of active labor market programs is the responsibility of subnational governments, the mandatory list of such programs is set by the federal government, which constitutes an unfunded mandate imposed upon subnational government by the federal government. In fact, the measures needed to support employment may vary significantly from territory to territory, and the focus of most existing programs is to support the registered unemployed, while motivated job seekers could use job search support before registering. The authors recommend to reform the organizational and financial models of employment services in Russia, first of all by allowing the regions to design their own employment support policies that take into account the specifics of the local labor market. They also recommend to abolish the current noncontributory unemployment benefit in Russia and to replace it with a means-tested income support benefit for the poor.

The Role of Unemployment, Financial Hardship, and Economic Recession on Suicidal Behaviors and Interventions to Mitigate Their Impact: A Review.

Understanding the social determinants and risk factors for suicidal behaviors underlies the development of effective suicide prevention interventions. This review focused on recently published literature (2010 onwards), with the aim to determine the role of economic factors (at the individual and population level) on suicidal behaviors and ideation as well as the effectiveness of interventions addressing these factors in reducing suicidal behaviors and ideation. Where available, literature examining the economic impact of COVID-19 was highlighted. Economic recession and unemployment are associated with increased risk of suicidal behavior at the population and individual level. Additionally, personal financial problems such as debt and financial strain are associated with increased risk of suicidal behavior and ideation at the individual level. Regarding interventions, unemployment benefits, employment protection legislation, higher minimum wage and active labor market programs may reduce suicide at the population level. However, it is not clear what impact they have at the individual level, nor in relation to suicide attempts, self-harm, or suicidal ideation. There was a lack of evidence as to the effectiveness of financially focused suicide prevention interventions at either level. Current findings were contextualized within, and advance, prominent social theoretical models. Recommendations focused on future areas of research, including the unfolding economic impact of COVID-19, as well as the co-design and evaluation of tailored interventions and/or gatekeeper training for those in the financial and welfare sector, and enhanced early education aimed at increasing financial literacy in young people before onset or exacerbation of financial hardship.

Make IT Work: The Labor Market Effects of Information Technology Retraining in the Netherlands

The aim of this paper is to evaluate the effects of an active labor market program (ALMP) for higher educated workers in the Netherlands. The one-year program is characterized by six months of full-time IT retraining followed by a six-month internship. We estimate the effects of participating on earnings per month and working days per month. The results show significant lock-in effects during the program, lasting up to five months after program start. After this lock-in period, we find significant positive effects on earnings and working days. These positive effects remain significant until the end of the 36-month evaluation period. A conservative cost–benefit analysis based on the effects on earnings shows a return of 2.53% (95% CI 2.02–3.04%), which is low compared to the returns to education in the Netherlands of around 8%. We conclude that IT retraining has positive effects on the labor market outcomes of the participants yet relatively low returns.

Which Active Labor Market Policies Work for Male Refugees? Evidence from Germany

Abstract In this paper, we estimate the causal effects of a set of active labor market programs for male unemployed refugees on welfare who entered Germany between, 2013 and September, 2016. Using rich administrative data, we employ covariate balancing propensity scores combined with inverse probability weighting to estimate effects up to 33 months after the start of treatment. Our results show that relatively short-term training in the form of Schemes by Providers and In-Firm Training, as well as longer-term Further Vocational Training programs have a positive impact on both the employment chances as well as labor market earnings of refugees in the medium run. So-called “One Euro Jobs”, a public employment program, does not yield positive effects on employment or earnings. Sensitivity analyses confirm that our results are unlikely to be driven by unobserved confounding.