Active Labour Market Programmes Research Articles

Re)Constructing Career Strategies After Experiencing Involuntary Job Loss

AbstractThis research article focuses on experiences of involuntary job loss following organizational change as occasions for career (re)construction. Using narrative inquiry, it explores the career stories of four former professionals on an Irish active labour market programme assisting the long-term unemployed to transition to employment. The article portrays how, and in what ways, the participants respond when confronted with transformation. Offering an empirically grounded understanding of the character and conduct of those encountering transition with greater nuance than that currently found in the literature, the article comprehends the approach that the former professionals use to (re)construct their career strategies. By integrating the concepts of the fateful moment and sensemaking, the article locates career identity within its wider societal and organizational contexts. It outlines the reactions of the professionals to the involuntary job loss by describing the criteria they use to evaluate the...

Unemployment Insurance and Entrepreneurship

AbstractBased on administrative registers from Norway, we examine how unemployment insurance (UI) and active labor market programs (ALMP) affect the transition rates from unemployment to regular employment and entrepreneurship, as well as subsequent earnings levels. We find that both the employment and entrepreneurship hazards rise sharply in response to UI sanctions and UI exhaustion. On average, transitions to entrepreneurship are more profitable than transitions to regular employment. While employment transitions are highly pro‐cyclical, entrepreneurship transitions are weakly counter‐cyclical. ALMPs targeted at entrepreneurship are rare in Norway, but the few start‐up subsidies that are provided are successful in terms of generating paid work.

Combining Matching and Nonparametric Instrumental Variable Estimation: Theory and An Application to the Evaluation of Active Labour Market Policies

SummaryWe show how instrumental variable and matching estimators can be combined in order to identify a broader array of treatment effects. Instrumental variable (IV) estimators are known to estimate effects only for the compliers, representing a subset of the entire population. By combining IV with matching, we can estimate the treatment effects for the always‐ and never‐takers as well. Since in many cases these groups are the (endogenous) outcome of some assignment process, such estimates also help in judging the implications of such a selection process. In our application to the effects of participation in active labour market programmes in Switzerland, we find large and lasting positive employment effects for the compliers, whereas the effects for the always‐ and never‐participants are small. In addition, the compliers have worse employment outcomes without treatment than those who participate in the programme with or without the intervention under investigation. This suggests that the earlier assignment policy of the caseworkers was inefficient in that the always‐participants were neither those unemployed who would experience the highest expected treatment effects nor those unemployed who had the largest need for assistance. Copyright © 2014 John Wiley & Sons, Ltd.

Economic shocks, resilience, and male suicides in the Great Recession: cross-national analysis of 20 EU countries.

During the 2007-11 recessions in Europe, suicide increases were concentrated in men. Substantial differences across countries and over time remain unexplained. We investigated whether increases in unaffordable housing, household indebtedness or job loss can account for these population differences, as well as potential mitigating effects of alternative forms of social protection. Multivariate statistical models were used to evaluate changes in suicide rates in 20 EU countries from 1981-2011. Models adjusted for pre-existing time trends and country-fixed effects. Interaction terms were used to evaluate modifying effects. Changes in levels of unaffordable housing had no effect on suicide rates (P = 0.32); in contrast, male suicide increases were significantly associated with each percentage point rise in male unemployment, by 0.94% (95% CI: 0.51-1.36%), and indebtedness, by 0.54% (95% CI: 0.02-1.06%). Spending on active labour market programmes (ALMP) (-0.26%, 95% CI: -0.08 to -0.45%) and high levels of social capital (-0.048%, 95% CI: -0.0096 to -0.087) moderated the unemployment-suicide association. There was no interaction of the volume of anti-depressant prescriptions (P = 0.51), monetary benefits to unemployed persons (P = 0.77) or total social protection spending per capita (P = 0.37). Active labour market programmes and social capital were estimated to have prevented ∼ 540 and ∼ 210 male suicides, respectively, arising from unemployment in the countries studied. Job losses were a critical determinant of variations in male suicide risks in Europe's recessions. Greater spending on ALMP and levels of social capital appeared to mitigate suicide risks.

(Re)Constructing Career Strategies After Experiencing Involuntary Job Loss

This research article focuses on experiences of involuntary job loss following organizational change as occasions for career (re)construction. Using narrative inquiry, it explores the career stories of four former professionals on an Irish active labour market programme assisting the long-term unemployed to transition to employment. The article portrays how, and in what ways, the participants respond when confronted with transformation. Offering an empirically grounded understanding of the character and conduct of those encountering transition with greater nuance than that currently found in the literature, the article comprehends the approach that the former professionals use to (re)construct their career strategies. By integrating the concepts of the fateful moment and sensemaking, the article locates career identity within its wider societal and organizational contexts. It outlines the reactions of the professionals to the involuntary job loss by describing the criteria they use to evaluate their career success (‘envisionment’) and recounting their perception of control over their career outcomes (‘enactment’). The article identifies four possible career (re)construction strategies – changed envisionment/changed enactment, constant envisionment/changed enactment, constant envisionment/constant enactment and changed envisionment/constant enactment. Three new categories of career success are proposed to take account of the participant's altered career scripts – ‘monetarists’, ‘recognition seekers’ and ‘security seekers’.

Regional matching (in)efficiency on the Croatian labour market

This article investigates the efficiency of the matching process by panel stochastic frontier estimation of the matching function in Croatia. The empirical analysis is conducted on a regional level using regional office-level monthly data obtained from the Croatian Employment Service for 2000–2011. The results suggest that the efficiency of the matching process is rising over time, although with significant regional variations. In order to explore these variations, structural characteristics of the labour market together with some policy variables are included in the second-stage estimation. Various structural variables have different impact on the matching efficiency, while policy variables are mostly positively correlated with it. For instance, both active labour market programs and the number of high-skilled employees in regional employment offices positively affect matching efficiency. Additionally, when regional income per capita is included in the model, it shows positive impact on the matching efficiency, indicating that demand fluctuations predominantly affect the matching process. Finally, in order to get consistent estimates, panel stochastic frontier model transformation is applied. The obtained results show that there is no major difference in estimated mean technical efficiency coefficients in comparison to the original estimation.

Do Active Labour Market Policies Promote the Subjective Well-Being of the Unemployed? Evidence from the UK National Well-Being Programme

In the past 5 years, the UK government has expanded its efforts to understand, measure and incorporate indicators of subjective well-being (SWB) into the policy-making process. Utilizing the new data collected as part of the government’s well-being agenda, this paper investigates whether active labour market programmes (ALMPs) are associated with increased SWB amongst the unemployed. Unemployment has long been shown to be detrimental to mental health and happiness. In recent years, ALMPs have been increasingly proposed as potential mechanisms to improve the SWB of the unemployed. Using multiple linear regression models, the findings suggest that ALMPs do improve the SWB of the unemployed. However, there are three caveats. First, the effect of ALMPs appears to be far stronger for evaluative measures of SWB over affective measures. Second, the effect of ALMPs is larger for men than for women. Third, the impact of an ALMP is dependent upon the type of intervention: work-oriented ALMPs are more effective than employment-assistance ALMPs. In light of these findings, the theoretical and policy consequences are discussed.

Economic recession and suicidal behaviour: Possible mechanisms and ameliorating factors.

A growing body of research evidence from countries around the world indicates that economic recession is associated with increases in suicide, particularly in males of working age. To explore contributory and ameliorating factors associated with economic recession and suicide and thereby stimulate further research in this area and encourage policy makers to consider how best to reduce the impact of recession on mental health and suicidal behaviour. We conducted a selective review of the worldwide literature focusing on possible risk factors, mechanisms and preventative strategies for suicidal behaviour linked to economic recession. A model of how recession might affect suicide rates is presented. A major and often prolonged effect of recession is on unemployment and job insecurity. Other important effects include those exerted by financial loss, bankruptcy and home repossession. It is proposed these factors may lead directly or indirectly to mental health problems such as depression, anxiety and binge drinking and then to suicidal behaviour. Countries with active labour market programmes and sustained welfare spending during recessions have less marked increases in suicide rates than those that cut spending on welfare and job-search initiatives for the unemployed. Other measures likely to help include targeted interventions for unemployed people, membership of social organisations and responsible media reporting. Good primary care and mental health services are needed to cope with increased demand in times of economic recession but some governments have in fact reduced healthcare spending as an austerity measure. The research evidence linking recession, unemployment and suicide is substantial, but the evidence for the other mechanisms we have investigated is much more tentative. We describe the limitations of the existing body of research as well as make suggestions for future research into the effects of economic recession on suicidal behaviour.

Do dropouts with longer training exposure benefit from training programs? Korean evidence employing methods for continuous treatments

Failure of participants to complete training programs is pervasive in existing active labor market programs, both in developed and developing countries. From a policy perspective, it is of interest to know if dropouts benefit from the time they spend in training since these programs require considerable resources. We shed light on this issue by estimating the average employment effects of different lengths of exposure by dropouts in a Korean job training program, and contrasting it to the ones by program completers. To do this, we employ methods to estimate effects from continuous treatments using the generalized propensity score, under the assumption that selection into different lengths of exposure is based on a rich set of observed covariates. We find that dropouts with longer exposures exhibit higher employment probabilities one year after receiving training, but only after surpassing a threshold of exposure of about 12–15 weeks. In contrast, program completers exhibit higher returns from their time of exposure to the program than dropouts, but these tend to decline for longer program durations.

Which firms use targeted wage subsidies? An empirical note for Germany

In Germany, temporary wage subsidies (Eingliederungszuschüsse) can be granted to employers if they hire workers with obstacles to placement. Based on the 2003, 2005, 2007 and 2009 waves of the IAB Establishment Panel, this paper looks into the following questions: Is there a connection between the use of targeted wage subsidies and certain structural characteristics of the establishment, such as establishment size, industry and employment structure? Is the labor turnover of establishments that make use of wage subsidies higher than that of similar establishments that do not? Do establishments that utilize targeted wage subsidies also make use of other active labor market programs (e.g. work opportunities) to a disproportionate degree? On the whole, the empirical findings confirm that establishment structures are important for the decisions of firms to make use of targeted wage subsidies.

MERE AKTIVNE POLITIKE ZAPOŠLJAVANJA U FUNKCIJI SMANJENJA NEZAPOSLENOSTI

Employment measures of the state can have a significant impact on employment, especially of those people who have difficulties entering the labor market.These measures don’t only stimulate employers, but also provide incentives for selfemployment. The increase of government expenses on active labor market programs, particularly in Central and Eastern Europe, reduces unemployment, but rapid Babic, V. Mere aktivne politike zaposljavanja FBIM Transactions Vol.2 No.1 pp.101-110 102 MESTE Published: January 2014 economic growth and development is impossible without an increase of business investment. Serbia's unemployment rate is extremely high, and its reduction will result from employment policy measures that must comply with the requirements of the labor market, educational policy and scientific and technological development, while creating jobs in the private sector.This paper aims to show how much the developed countries of the EU, the countries of Central and Eastern Europe and Serbia invested in active employment measures in the past, and it also shows the way those investments led to a decrease in unemployment. The structure of the measures taken to reduce unemployment, and the objectives and priorities of the national strategy for employment in Serbia are also presented. For this purpose, a comparative analysis of different indicators was carried out. The conclusion is that by using the measures of active employment policy states can significantly decrease unemployment, but these measures must be combined with investment activities.

Dealing with unemployment: What should be the role of labour market programs?

This review presents a summary of evidence on outcomes from active labour market programs. Active labour market programs aim to increase the likelihood of employment for individuals who are unemployed or at risk of unemployment. The focus of this review is on studies of active labour market programs in Australia, supplemented with international evidence. An overview and historical background on active labour market programs is provided, as well as an introduction to the empirical methods used to estimate the effect of the programs. Evidence on the effects of the main types of programs – case management, work experience programs and formal education and training – is reviewed, and the main findings are distilled into a set of lessons for policy makers. The review concludes that active labour market programs cannot by themselves have a major impact on the rate of unemployment, but some spending on these programs is justified by outcomes such as increasing the pool of unemployed who are job ready and sharing the burden of unemployment. Job search and wage subsidy programs are suggested to be good ways to assist unemployed who are less disadvantaged. For unemployed with higher levels of disadvantage, priority should be given to programs that create jobs with opportunities for linked training, and that provide a pathway to a permanent job. Evidence Base, issue 4, 2014

Unemployment at a Young Age and Later Unemployment in Native Swedish and Immigrant Young Adults

The youth unemployment rate is increasing in many countries and unemployment affects future work participation. Immigrants have more difficulties than natives in succeeding on the labour market. This study examined the long-term effect of unemployment on future unemployment in Sweden. All immigrants born during 1968-1972 and a random sample of native Swedes of the same age are included. The follow-up period was 15 years, 1993-2007. Unemployed individuals had an elevated risk of unemployment during follow-up. The risk of unemployment increased with the length of unemployment in 1992. Immigrants had a higher risk of unemployment both at baseline and follow-up compared with native Swedes, but followed the same pattern as native Swedes when exposed to unemployment. For individuals with ≥100 days of unemployment in 1992, participation in an Active Labour Market Program (ALMP) increased the risk of future unemployment, whereas both higher educational level at baseline and attainment of a higher educational level between 1993 and 1997 decreased the risk. In addition to the human suffering caused, this can result in increased welfare payments and loss of productivity and tax income to a society. Immigrants seem not to be more vulnerable to unemployment than native Swedes.

Youth market labor interventions

Reducing youth unemployment and generating more and better youth employment opportunities are key policy challenges worldwide. Active labor market programs for disadvantaged youth may be an effective tool in such cases, but the results have often been disappointing in Organisation for Economic Co-operation and Development (OECD) countries. The key to a successful youth intervention program is comprehensiveness, comprising multiple targeted components, including job-search assistance, counseling, training, and placement services. Such programs can be expensive, however, which underscores the need to focus on education policy and earlier interventions in the education system.

Global Crises, fiscal space and national response

Abstract:           The main aim of this paper is to examine the impacts of the crisis on fiscal space and government social spending. It also examines the design and implementation of national rescue packages, concentrating in particular on the composition of stimulus packages in terms of social protection and employment measures. This study analyses data from the year 2000 to 2011 in order to find out the Global Crises, fiscal space and national response. In this analysis various secondary sources have been used. It analyses the impacts, shortcomings, challenges, and policy reform measures of the Global food crisis.The global nature of the recent crisis limits that option. Countries with the flexibility to implement counter-cyclical policies have been better able to mitigate the impacts of the crisis on their economies and people Likewise, countries that have social protection systems as well as active labour market programmes in place, have been in a better position to mitigate adverse social impacts. It seems many countries learned lessons from previous crises and devoted substantial shares of their stimulus spending to the social sector to either expand existing programmes or to implement new ones. Unfortunately, many poorer developing countries lack the institutional and/or fiscal capacity to finance effective stimulus and welfare measures on their own. Instead, they must depend on aid to fill budgetary shortfalls in education, health and other programmes aimed at addressing poverty.           Educational, Scientific and Cultural Organization estimates that the average annual shortfall in funding needed to meet the internationally agreed development goals in education is $16 billion, $5 billion more than previously estimated (United Nations Educational Scientific and Cultural Organization, 2010). The crisis dampens the prospects for closing this gap. Thus, policy adjustments to support social spending and improve economic growth are essential to limit the impact of the crisis on poverty.

The Effect of Making a Voluntary Labour Market Programme Compulsory: Evidence from a UK Experiment

AbstractThis paper investigates the effects on employment and benefit receipt of making a voluntary active labour market programme compulsory. This policy change, which targeted long‐term unemployed people over the age of 50, was piloted in a number of areas within the UK and evaluated by individual random assignment of the requirement to participate. The results show that mandating participation resulted in a sustained increase in employment and a corresponding reduction in benefit receipt. The results were driven at least in part by a deterrent effect.

Journal for labour market research: special issue PASS

In January 2005 the Social Code Book II came into effect in Germany. It introduced the new unemployment benefit II (Arbeitslosengeld II) as a major element and final stage of a series of labour market reforms termed the Hartz reforms which aimed at flexibilization of the German labour market and granted (re)integration of persons in need into the labour market precedence over pure economic subsidies. The new means tested benefit integrated the former social assistance (a welfare benefit) and the former unemployment assistance for long-term unemployed persons whose entitlement to unemployment insurance payments had expired. Its paradigm is summarized in the slogan “support and challenge” (in German “fordern und fordern”). Support for integration into employment was extended to groups that had formerly been far detached from the labour market. On the other hand status protection regulations were disestablished and pressure on recipients to take up any reasonable employment was increased by the introduction of benefit sanctions and active labour market programmes designed to test work motivation.

Asymmetric Effects of National-based Active Labour Market Policies

Altavilla C. and Caroleo F. E. Asymmetric effects of national-based active labour market policies, Regional Studies. Labour market policies settled at the national level imply a ‘one-size-fits-all’ labour market strategy. This strategy might not sufficiently take into account region-specific economic structures. Whether active labour market programmes might asymmetrically affect labour markets at the regional level is evaluated. The results for Italy suggest that while in the South employment is mainly driven by social and economic context variables, in the North the employment dynamics are significantly explained by policy interventions. Two policy implications are suggested. First, the success of active policies depends on the regional labour market conditions. Second, policy-makers should adjust labour policy strategy to regional economic structures.

A reform agenda for improving the delivery of ALMPs in the MENA region

Abstract Given the labor market challenges that countries in the Middle East and North Africa (MENA) region are facing (notably high unemployment, prevalence of skills mismatches, low labor market mobility, and lack of formal employment networks), Active Labor Market Programs (ALMPs) could be a relevant policy instrument to assist unemployed individuals find jobs. This study first introduces a conceptual framework for ALMPs and describes their overall impact on employment outcomes. The study then reviews the provision of ALMPs in a selected group of countries in the MENA region, with a focus on public provision through existing public employment agencies. The study also presents the results of some of the few available robust evaluations of AMLPs the region, in a context where information about program effectiveness and efficiency is largely lacking. Finally, the study identifies key challenges in the delivery of publicly provided ALMPs in MENA countries, namely poor administrative capacity, system fragmentation, lack of governance and accountability, regulation bottlenecks, and flaws in program design. To address these challenges, the study proposes a reform agenda based on a four-pillar policy framework: (i) develop results-based Public Private Partnerships (PPPs); (ii) promote systems and program integration; (iii) develop results-based monitoring and evaluation (M&E) frameworks; and (iv) promote entrepreneurship/self-employment, on-the-job training and life skills training among job seekers. JEL codes J20, J30, J40, J50

322 Unemployment at a young age and later unemployment in native Swedish and immigrant young adults

ObjectivesThe youth unemployment rate is increasing around the world due to recent recessions in the worldwide economy. Unemployment has been seen to affect future work participation. This register-based study examined...