Measures of Active Labor Market Policy - such as training, wage
subsidies, public employment measures, and job search assistance -
are widely used in European countries to combat unemployment.
Little, however, is known about what each country can learn from
experiences in other countries. This study provides novel insight
on this important policy issue by discussing the role of the
European Commission's Employment Strategy, reviewing the
experiences made in European states, and giving the first ever
quantitative assessment of the existing cross-country evidence,
answering the question "what labor market program works for what
target group under what (economic and institutional)
circumstances?." Using an innovative meta-analytical approach, the
authors find that rather than contextual factors such as labor
market institutions or the business cycle, it is almost exclusively
the program type that matters for program effectiveness: While
direct employment programs in the public sector appear detrimental,
wage subsidies and "Services and Sanctions" can be effective in
increasing participants' employment probability.
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