Active Labor Market Policies in Europe: Performance and by Jochen Kluve, David Card, Michael Fertig, Marek Góra, Lena

By Jochen Kluve, David Card, Michael Fertig, Marek Góra, Lena Jacobi, Peter Jensen, Reelika Leetmaa, Leonhard Nima, Eleonora Patacchini, Sandra Schaffner, Christoph M. Schmidt, Bas van der Klaauw, Andrea Weber

Measures of energetic hard work industry coverage - akin to education, salary subsidies, public employment measures, and task seek tips - are general in eu international locations to wrestle unemployment. Little, notwithstanding, is understood approximately what each one state can examine from reviews in different international locations. This learn presents novel perception in this very important coverage factor by means of discussing the function of the eu Commission's Employment method, reviewing the reviews made in eu states, and giving the 1st ever quantitative overview of the present cross-country proof, answering the query "what exertions marketplace software works for what objective staff below what (economic and institutional) circumstances?". utilizing an cutting edge meta-analytical technique, the authors locate that instead of contextual components comparable to hard work industry associations or the enterprise cycle, it truly is nearly completely this system variety that issues for application effectiveness: whereas direct employment courses within the public region seem damaging, salary subsidies and "Services and Sanctions" might be potent in expanding contributors' employment probability.

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For the purpose of addressing the problem in a sufficiently abstract way some degree of formalism will be unavoidable. In particular, it is fruitful to describe each individual in the realm of the program under scrutiny by several key characteristics. Denote the state associated with receiving the intervention by “1”, and the state associated with not receiving the intervention by “0”. Receiving the intervention is indicated by the individual indicator variable Di . That is, if individual i receives training under this program, then Di = 1.

3 percent in 2004. 5 percent in 2004 constitutes the largest distance from the Lisbon targets. 8 percent for women is close to the intermediate targets. Nevertheless, as a result, the intermediate targets for 2005 of an overall employment rate of 67% has not been attained. 6 There are a few countries (Denmark, Sweden, and the UK) that already exceed all EU employment targets in 2004. These three countries, along with the Netherlands, already have an overall employment rate of over 70%. Another set of countries including Finland, Ireland, Austria, Cyprus, Germany, Portugal and Slovenia are in a range between 65–70% regarding their employment rate, whereas most EU25 countries have an overall employment rate below 65%.

This evaluation problem is the problem of finding an appropriate identification assumption that allows replacing this counterfactual population average E(Yt | X = k, D = 1) in (1) with an entity that is identified from observable data. It is a counterfactual because it indicates what would have happened to participants, on average, if they had not participated in the program. It is a problem that cannot be solved by more or by refined measurement. It can only be resolved by finding a plausible comparison group.

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