Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Better together: Active and passive labor market policies in developed and developing economies

Better together: Active and passive labor market policies in developed and developing economies AbstractWe investigate the macroeconomic impact of public expenditure in active labor market policies (ALMPs) and passive labor market policies (PLMPs) on main employment indicators (i.e., unemployment, employment, and labor force participation) for a large and novel panel database of 121 countries (36 developed, 64 emerging and 21 developing economies). Compared to previous studies, we include for the first time evidence from developing and emerging economies and explicitly examine the possible presence of complementarities between active and passive policies. We find that the interaction between interventions is crucial, as the effect of spending in either of the two policies is more favorable the more is spent on the other. Even the detrimental labor market effects of passive policies disappear on the condition that sufficient amounts are spent on active interventions. This complementarity seems even more important for emerging and developing economies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png IZA Journal of Development and Migration de Gruyter

Better together: Active and passive labor market policies in developed and developing economies

Loading next page...
 
/lp/de-gruyter/better-together-active-and-passive-labor-market-policies-in-developed-h433ISB8Eo
Publisher
de Gruyter
Copyright
© 2021 Clemente Pignatti et al., published by Sciendo
ISSN
2520-1786
DOI
10.2478/izajodm-2021-0009
Publisher site
See Article on Publisher Site

Abstract

AbstractWe investigate the macroeconomic impact of public expenditure in active labor market policies (ALMPs) and passive labor market policies (PLMPs) on main employment indicators (i.e., unemployment, employment, and labor force participation) for a large and novel panel database of 121 countries (36 developed, 64 emerging and 21 developing economies). Compared to previous studies, we include for the first time evidence from developing and emerging economies and explicitly examine the possible presence of complementarities between active and passive policies. We find that the interaction between interventions is crucial, as the effect of spending in either of the two policies is more favorable the more is spent on the other. Even the detrimental labor market effects of passive policies disappear on the condition that sufficient amounts are spent on active interventions. This complementarity seems even more important for emerging and developing economies.

Journal

IZA Journal of Development and Migrationde Gruyter

Published: Jan 1, 2021

Keywords: developing countries; evaluation; labor economics; public policy; welfare state; J08 Labor Economics Policies; E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity; O1 Economic Development

There are no references for this article.