Summary
We present a theoretical analysis of different types of active labor market policies in the context of a search-matching model. We find that labor market training is effective in bringing down unemployment while public employment services and subsidized jobs are not effective at all. This theoretical finding is confirmed in an explorative empirical analysis using data from 20 OECD countries.
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The authors thank Andrea Bassanini and Romain Duval for making their data available. Jan Boone acknowledges financial support from NWO through a Vici grant.
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Open Access This is an open access article distributed under the terms of the Creative Commons Attribution Noncommercial License (https://creativecommons.org/licenses/by-nc/2.0), which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.
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Boone, J., van Ours, J.C. Bringing Unemployed Back to Work: Effective Active Labor Market Policies. De Economist 157, 293–313 (2009). https://doi.org/10.1007/s10645-009-9127-4
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DOI: https://doi.org/10.1007/s10645-009-9127-4