B1 Non-refereed journal articles
Aktiivisen työvoimapolitiikan mahdollisuudet työllisyysasteen kasvattamisessa (2020)


Kauhanen, A. (2020). Aktiivisen työvoimapolitiikan mahdollisuudet työllisyysasteen kasvattamisessa. Työpoliittinen aikakauskirja, 63(3), 8-18. http://urn.fi/URN:ISBN:ISBN:978-952-327-579-9


JYU authors or editors


Publication details

All authors or editors: Kauhanen, Antti

Journal or series: Työpoliittinen aikakauskirja

ISSN: 0787-510X

eISSN: 1797-5085

Publication year: 2020

Volume: 63

Issue number: 3

Pages range: 8-18

Publisher: Työ- ja elinkeinoministeriö

Publication country: Finland

Publication language: Finnish

Persistent website address: http://urn.fi/URN:ISBN:ISBN:978-952-327-579-9

Publication open access: Openly available

Publication channel open access: Open Access channel

Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/72813


Abstract

This article considers the impact of active labor market policy on the employment rate. It reviews the literature on wage subsidies, training and job search assistance. Particular attention is paid on the side effects of active labor market policies such as the lock-in effect, substitution effect and displacement effect. Recent research concerning the implementation of active labor market policies is also reviewed.
The evaluation studies show that private sector wage subsidies have positive employment effects both in the short and long runs. Public sector wage subsidies do not have positive employment effect on any time frame. Research suggests that wage subsidies may have substantial displacement and substitution effects. Training programs have strong lock-in effects in the short run, but positive employment effects in the long run. Job search assistance has a positive employment effect especially in the short run but has also significant substitution effects.
The quantitative impact of active labor market policy on the employment of the treated is 5-12 percentage points a couple of years after the program end. The impact on the employment rate is smaller due to substitution and displacement effects.


Keywords: labour market policy; employment assistance; pay subsidy; effects on employment; employment rate


Contributing organizations


Ministry reporting: Yes

Reporting Year: 2020


Last updated on 2024-22-04 at 10:40