Participation In Labour Market Programmes Research Articles

Participation in labour market programmes: A positive or negative signal of employability?

Active labour market policies (ALMPs) are widely diffused measures aiming to re-integrate jobseekers into the labour market. Despite their crucial role in acting as gatekeepers to employment, the literature scarcely considers the employer’s perspective of these measures. We analysed whether and how employers consider ALMP participation in the hiring process as a signal that helps explain the labour market outcomes of jobseekers. We developed a theoretical argument regarding how employers interpret ALMP participation and identify assumed agency, that is, whether employers believe that the agency for initiating ALMP participation lies with the jobseeker (voluntary participation) or the job centre (mandatory participation), as a crucial factor determining whether their evaluation of ALMPs is positive or negative. To examine our expectations, we conducted qualitative interviews with employers hiring for low-skilled occupations in Switzerland and Sweden, representing two countries with comprehensive ALMP systems. As expected, the interpretation of ALMP programmes differs depending on the assumed agency. Employers who believe that participation is voluntary interpret participation as a signal of motivation; however, employers who believe that participation is mandatory interpret participation as a signal of lower productivity, which reduces the chances of a successful labour market access.

The Signaling Value of Labor Market Programs

This paper investigates how employers interpret participation in active labor market programs for hiring decisions. Drawing on signaling theory, we assume that employers use program participation as a signal for a candidate’s qualities. On the basis of a factorial survey experiment, we simulated a hiring process for two job positions, a low and mid-skilled one, in the hotel sector. Recruiters were asked to evaluate fictional candidates that differ, among other characteristics, in their participation in active labor market programs. Our results show that employers do use participation in labor market programs as a signal. Its impact can be positive as well as negative, depending on the type of job that is applied for. For low-skill positions, the impact is more positive than for mid-skilled ones. We also show that the signal “participation in a labor market program” interacts with education and, to a lesser extent, nationality. By studying interactions among signals and with job type, this article contributes both, to a better understanding of how job market signaling works as well as to the literature on labor market programs.

The Signalling Value of Labour Market Programmes

This article investigates how employers interpret participation in labour market programmes when assessing job candidates. We hypothesize that employers use programme participation to sort applicants. On the basis of a factorial survey experiment, we simulated the recruitment process for two positions requiring different skills in the hotel sector. Recruiters were asked to evaluate fictitious candidates who differ in their participation in active labour market programmes. Our results show that employers take programme participation into account when assessing a candidate. Its impact can be positive or negative depending on the candidate’s distance from the labour market. Candidates more distant from the labour market are evaluated better if they have participated in a programme. For stronger candidates, instead, participation can act as a stigma and worsen the assessment made by the recruiter.

Active Labour Market Programme Participation for Unemployment Insurance Recipients

Objective:This review evaluates the effectiveness of Active Labour Market Programme (ALMP) participation on employment status for unemployment insurance recipients.Methods and Analysis:We followed Campbell Collaboration guidelines to conduct a systematic review.Results:A total of 73 studies met the inclusion criteria and were critically appraised by the review authors. The available evidence suggests that there is a general effect of participating in ALMP. The findings are mixed, however, depending on the approach used to investigate the effect, with no effect found of being assigned to ALMP participation at a particular moment.Authors’ Conclusions:The available evidence does suggest that there is an effect of participating in ALMP, but the effect is small and we found no effect of being assigned to ALMP participation at a particular moment.

PROTOCOL: Reducing Unemployment Benefit Duration to Increase Job Finding Rates: Protocol for a Systematic Review

PROTOCOL: Reducing Unemployment Benefit Duration to Increase Job Finding Rates: Protocol for a Systematic Review

PROTOCOL: Active Labour Market Programme Participation for Unemployment Insurance Recipients: protocol for a systematic review

PROTOCOL: Active Labour Market Programme Participation for Unemployment Insurance Recipients: protocol for a systematic review

Adult Workers in Theory or Practice?

This paper examines lone mothers’ participation in active labour market programmes in Germany. Since the 2005 Hartz IV employment and welfare policy reforms, expectations that non-em- ployed parents receiving means-tested benefits should be ready for employment or labour market programme participation have grown stronger. However, discretion for programme assignments is left to individual caseworkers. As a consequence, it is not clear to what extent the formal policy orientation towards an adult worker model of the family is reflected in practical policy implemen- tations. Thus, lone mothers’ participation in active labour market programmes is studied empiri- cally here on the basis of large-scale administrative data, using event-history analysis. Findings are that lone mothers are treated as adult workers with respect to workfare and training pro- grammes even when their children are still quite young. As soon as their youngest child is 3 - 5 years old, lone mothers’ transition rates into these programmes are as high as for childless single women. In the case of programmes that provide more direct pathways into regular employment, like job subsidies and in-firm training programmes, however, participation rates for lone mothers of young children are substantially lower than for childless single women.

Post-release Employment and Recidivism in Norway

Investigate the transition from prison to employment and the relationship between post-release employment and recidivism. We use a sample of every person released from Norwegian prisons in 2003 (N = 7,476), and they are followed through 2006 with monthly measures. We estimate the time to recidivism using discrete time survival models, conditioning upon both pre-release characteristics and post-release time-varying covariates (employment, educational enrollment and participation in labor market programs). The majority of former inmates were employed at some point in our data window, but it took approximately 30 months for 30% of them to become employed. The hazard of recidivism is substantially lower (0.12, p < .001) when former inmates are employed compared with unemployed, although observable individual characteristics can account for a large share of this association (0.50, p < .001, after adjustment). The negative association between employment and recidivism remains when controlling for other post-release statuses. Although post-release employment periods are associated with a lower risk of recidivism for all categories of principal offence, the magnitude of the association varies. The association is smaller for those receiving social benefits. The findings are consistent with theories suggesting that employment reduces the risk of recidivism.

A Reappraisal of the Virtues of Private Sector Employment Programmes*

This paper evaluates the employment effects of active labour market programmes for Danish welfare benefit recipients, focusing on private sector employment (PSE) programmes. Using a latent variable model that allows for heterogeneous treatment effects among observationally identical persons, we estimate commonly defined mean treatment effects and the distribution of treatment effects. We find no significant mean treatment effect of PSE programme participation as compared to participation in other programmes for PSE programme participants. However, we find substantial heterogeneity in the treatment effects, and those most likely to participate in PSE programmes are those who benefit the least from such programmes.

Stochastic Labour Market Shocks, Labour Market Programmes, and Human Capital Formation: A Theoretical and Empirical Analysis

This paper develops a life-cycle model of labour supply that captures endogenous human capital formation allowing for individual’s heterogeneous responses to stochastic labour market shocks. The shocks determines conditions in the labour market and sort individuals into three labour market regimes; employment, unemployment with and unemployment without participation in labour market programmes. The structural model entails time independent stochastic shocks that have transitory effects on monetary returns while the effect on human capital formation may be permanent. The permanent effect may justify the existence of active labour market programmes if these programmes imply non-depreciating human capital and human capital depreciation is detected for the non-participant unemployed. Using several years of the Swiss Labour Force Survey (SAKE, 1991 – 2004) the empirical section compares the dynamic formation of human capital between labour market regimes. The results are consistent with the assumptions of the structural model and suggest human capital depreciation for unemployment without programme participation. They further show that labour programmes may act as a buffer to reduce human capital loss while unemployed.

A Reappraisal of the Virtues of Private Sector Employment Programmes

In this paper, we evaluate the employment effects of Danish active labour market programmes aimed at welfare benefit recipients. We estimate an econometric model with treatment effects and discrete outcomes and we allow the responses to treatment to vary among observationally identical persons. The empirical analysis is based on a register-based dataset that gives information on participation in labour market programmes and subsequent employment. Using a latent variable model, we estimate commonly defined treatment effects, and in particular, the distribution of treatment effects. We do not find any significant mean effects of participation in private sector employment programmes compared to participation in other programmes, but we find evidence of heterogeneity in the treatment effects.

Activation or discouragement—the effect of enforced participation on the success of job-search trainingAktivointi vai lannistaminen—Työnhakuryhmään velvoittamisen vaikutukset

In recent years, there has been a shift in labour market policies towards enforcing unemployed workers’ participation in labour market programmes by means of financial sanctions. Requirements of activation and financial sanctions have changed the nature of social work and generated a conflict between client needs and policy requirements. The aim of this study is to investigate whether and how enforced participation modifies the impact of job-search training on re-employment and mental health. A total of 627 unemployed persons participated in this six-month follow-up study with a control group. In particular, those unemployed workers who were not able to meet the goal of the enforced initiatives by gaining employment are at risk of adverse mental health effects or even of discouragement on the labour market. The results of the follow-up study show that enforced participation did not increase re-employment; however it impaired the positive mental health impacts of the programme. Further analyses demonstrate that enforced participation in job-search training decreased re-employment among the longer-term unemployed workers. It is important that social workers acknowledge the risks that are involved with the enforcement for the more vulnerable groups of unemployed workers.

Financial Incentives and Job‐search Training: Methods to Increase Labour Market Integration in Contemporary Welfare States?

AbstractIn their efforts to increase labour market integration, contemporary welfare states emphasize the importance of financial incentives, active job‐searching and participation in labour market programmes. However, the effects of these policies have been minor and in some cases even inconsistent. The aim of this study was to examine whether and how financial incentives and job‐search training programmes increase re‐employment and the quality of re‐employment. A total of 1,015 unemployed persons participated in a Finnish follow‐up study with a randomized experimental design. Although no overall impact of job‐search training on re‐employment emerged, a positive effect was found for those groups of the unemployed who had a financial incentive to participate in the programme. Nevertheless, among unemployed workers with benefits at a minimum level there were no positive effects on the quality of re‐employment, and the impact decreased when unemployment was prolonged. Financial incentives and job‐search training appear to increase re‐employment among those of the unemployed who generally have better chances on the labour market, whereas these measures are not sufficient for the more disadvantaged groups of the unemployed.

Slovakia's 2004 Tax and Welfare Reforms

The paper reviews Slovakia`s comprehensive reforms to its taxation and welfare systems in 2004, including the introduction of a flat-rate income tax and single-rate value-added tax (VAT), and linkage of social benefits to participation in labor market programs. Though revenues following the reform are lower as a ratio to GDP, the paper argues that the reforms have helped encourage investment and improved efficiency by broadening the tax base, reducing the administrative burden, and improving work incentives. The paper also looks at some implications of the reforms for income distribution and social protection.

Slovakia's 2004 Tax and Welfare Reforms

The paper reviews Slovakia's comprehensive reforms to its taxation and welfare systems in 2004, including the introduction of a flat-rate income tax and single-rate value-added tax (VAT), and linkage of social benefits to participation in labor market programs. Though revenues following the reform are lower as a ratio to GDP, the paper argues that the reforms have helped encourage investment and improved efficiency by broadening the tax base, reducing the administrative burden, and improving work incentives. The paper also looks at some implications of the reforms for income distribution and social protection.

Assisting Workers Displaced by Structural Change: An International Perspective.

Leigh begins by providing a summary of the evolution of labor market programs in seven industrialized countries: Australia, Canada, Germany, Japan, Sweden, the United Kingdom, and the U.S. He points out that a number of these nations are dealing with long-term unemployment by linking unemployment insurance benefits to participation in labor market programs, and that this is a requirement U.S. policy makers should examine closely. Leigh also performs informal cross-country evaluations of these countries' programs,focusing on policies he feels merit attention. A three-level active labor market program is then proposed for the U.S.

Assisting workers displaced by structural change: an international perspective

Leigh provides a summary of the evolution of labor market programs in seven industrialized countries: Australia, Canada, Germany, Japan, Sweden, the United Kingdom, and the U.S. He points out that a number of these nations are dealing with long-term unemployment by linking unemployment insurance benefits to participation in labor market programs, and that this is a requirement U.S. policy makers should examine closely. He also performs informal cross-country evaluations of these countries' programs, focusing on policies he feels merit attention. A three-level active labor market program is then proposed for the U.S.