Do Active Labor Market Policies Increase Employment?


Book Description

Using panel data for 15 industrial countries, active labor market policies (ALMPs) are shown to have raised employment rates in the business sector in the 1990s, after controlling for many institutions, country-specific effects, and economic variables. Among such policies, direct subsidies to job creation were the most effective. ALMPs also affected employment rates by reducing real wages below levels allowed by technological growth, changes in the unemployment rate, and institutional and other economic factors. However, part of this wage moderation may be linked to a composition effect because policies were targeted to low-paid individuals. Whether ALMPs are cost-effective from a budgetary perspective remains to be determined, but they are certainly not substitutes for comprehensive institutional reforms.




Designing Labor Market Institutions in Emerging and Developing Economies


Book Description

This paper discusses theoretical aspects and evidences related to designing labor market institutions in emerging market and developing economies. This note reviews the state of theory and evidence on the design of labor market institutions in a developing economy context and then reviews its consistency with actual labor market advice in a selected set of emerging and developing economies. The focus is mainly on three broad sets of institutions that matter for both workers’ protection and labor market efficiency: employment protection, unemployment insurance and social assistance, minimum wages and collective bargaining. Text mining techniques are used to identify IMF recommendations in these areas in Article IV Reports for 30 emerging and frontier economies over 2005–2016. This note has provided a critical review of the literature on the design of labor market institutions in emerging and developing market economies, and benchmarked the advice featured in IMF recommendations for 30 emerging market and frontier economies against the tentative conclusions from the literature.







World Development Report 2013


Book Description

Jobs provide higher earnings and better benefits as countries grow, but they are also a driver of development. Poverty falls as people work their way out of hardship and as jobs empowering women lead to greater investments in children. Efficiency increases as workers get better at what they do, as more productive jobs appear, and less productive ones disappear. Societies flourish as jobs bring together people from different ethnic and social backgrounds and provide alternatives to conflict. Jobs are thus more than a byproduct of economic growth. They are transformational —they are what we earn, what we do, and even who we are. High unemployment and unmet job expectations among youth are the most immediate concerns. But in many developing countries, where farming and self-employment are prevalent and safety nets are modest are best, unemployment rates can be low. In these countries, growth is seldom jobless. Most of their poor work long hours but simply cannot make ends meet. And the violation of basic rights is not uncommon. Therefore, the number of jobs is not all that matters: jobs with high development payoffs are needed. Confronted with these challenges, policy makers ask difficult questions. Should countries build their development strategies around growth, or should they focus on jobs? Can entrepreneurship be fostered, especially among the many microenterprises in developing countries, or are entrepreneurs born? Are greater investments in education and training a prerequisite for employability, or can skills be built through jobs? In times of major crises and structural shifts, should jobs, not just workers, be protected? And is there a risk that policies supporting job creation in one country will come at the expense of jobs in other countries? The World Development Report 2013: Jobs offers answers to these and other difficult questions by looking at jobs as drivers of development—not as derived labor demand—and by considering all types of jobs—not just formal wage employment. The Report provides a framework that cuts across sectors and shows that the best policy responses vary across countries, depending on their levels of development, endowments, demography, and institutions. Policy fundamentals matter in all cases, as they enable a vibrant private sector, the source of most jobs in the world. Labor policies can help as well, even if they are less critical than is often assumed. Development policies, from making smallholder farming viable to fostering functional cities to engaging in global markets, hold the key to success.




Active Labour Market Policies Around the World


Book Description

Active labor market policies (ALMPs) are found in almost all countries of the world but differ in amplitude, design, and implementation. Comprising an array of measures, ALMPs can take the form of special support for job searching, training and education for the unemployed, and various other subsidies and job creation activities. While providing a valuable overview of the nature of these policies, this book examines some of the pitfalls and challenges countries face when evaluating them. It also provides a policy framework for designing ALMPs that are permanent yet adaptable instruments to cope with changes linked to globalization. Contents Introduction Historical background of ALMPs Definition and functions of ALMPs Contribution of ALMPs to the objectives of employment creation, security in change, equity and poverty reduction Differences in the utilization of ALMPs: Developed, transition and developing countries Evaluation of ALMPs New trends in ALMPs Conclusions: A framework for the management of change Bibliography







Labour Market Reforms in Portugal 2011-15 A Preliminary Assessment


Book Description

This report evaluates the comprehensive labour market reforms undertaken in Portugal in 2011-15. It reviews reforms in employment protection legislation, unemployment benefits, activation, collective bargaining, minimum wages and working time, and assesses the available evidence on their impact.




OECD Employment Outlook 2018


Book Description

The 2018 edition of the OECD Employment Outlook reviews labour market trends and prospects in OECD countries.







Unemployment Insurance and Active Labor Market Policy


Book Description

This volume examines the impact that the financing and administration systems of labor market policy have on the design of national policies concerning the unemployed. The authors investigated labor market policy in six countries--Austria, France, Federal Republic of Germany. Great Britain, Sweden, and the United States--and determined that the distribution of responsibility for labor market programs, the financing of these programs, and the procedures for determining issues and expenditures differ markedly from country to country. The authors explore how the same economic causes--price changes, technological rationalization, new products--can have very different labor market effects because of institutional factors, such as the job-search behavior of the unemployed, the mobility of the employed, the hiring practices of firms, wage negotiations between trade unions and employers, and the employment policies of different levels of government and their impact on the behavior of labor market forces. Unemployment Insurance and Active Labor Market Policy answers the questions: how much public funding do the unemployed receive in wage-replacement benefits and for how long; how much public funding is devoted for manpower programs and invested in "active" labor market policy; and finally, how are the necessary financial resources made available? In summary, the book investigates the relationship between the financing system and revenues and expenditures for labor market policy, the role played by market policy in employment policy as a whole, and the impact of the financing system for labor market policy on the classical goals of the welfare state. The findings of this comprehensive study should contribute to the redeployment of financial resources from those funds currently being used to finance unemployment (unemployment benefits, unemployment assistance, and public assistance) to financing employment.