How effective are ALMPs – and how can we tell?
Active Labor Market Policies are a means of combating unemployment and promoting employment for PES. ALMPs support three main groups: unemployed, employed at risk, and inactive. There is renewed interest in the potential for ALMPs to ease labor market problems such as youth unemployment and joblessness among displaced adults.
Many governments spend substantial amounts on ALMPs. Countries like Denmark and Sweden spend more than one percent of their GDP on ALMPs like job search assistance, training, wage subsidies, and public employment.
But do ALMP interventions deliver on their promise? That depends greatly on the type of program, but also on the timeline and the type of measured outcome – short term vs long term, for example.
Chapter 1 of Managing Workforce Potential delves deeper into ALMP research. The author of this chapter, Regina Konle-Seidl, is a Senior Research Fellow at the German Institute for Employment Research, specializing in international comparison of labor market institutions and reforms, ALMPs, and governance of employment services.
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