How Effective Are Active Labor Market Policies in Developing Countries? : A Critical Review of Recent Evidence
Jobs are the number one policy concern of policy makers in many countries. The global financial crisis, rising demographic pressures, high unemployment rates, and concerns over automation all make it seem imperative that policy makers employ increa...
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okr-10986-263522021-06-08T14:42:48Z How Effective Are Active Labor Market Policies in Developing Countries? : A Critical Review of Recent Evidence McKenzie, David LABOR MARKET LABOR POLICY LABOR REGULATIONS VOCATIONAL TRAINING WAGE SUBSIDIES JOB SEARCH ASSISTANCE Jobs are the number one policy concern of policy makers in many countries. The global financial crisis, rising demographic pressures, high unemployment rates, and concerns over automation all make it seem imperative that policy makers employ increasingly more active labor market policies. This paper critically examines recent evaluations of labor market policies that have provided vocational training, wage subsidies, job search assistance, and assistance moving to argue that many active labor market policies are much less effective than policymakers typically assume. Many of these evaluations find no significant impacts on either employment or earnings. One reason is that urban labor markets appear to work reasonably well in many cases, with fewer market failures than is often thought. As a result, there is less of a role for many traditional active labor market policies than is common practice. The review then discusses examples of job creation policies that do seem to offer promise, and concludes with lessons for impact evaluation and policy is this area. 2017-04-13T14:55:45Z 2017-04-13T14:55:45Z 2017-03 Working Paper http://documents.worldbank.org/curated/en/256001490191438119/How-effective-are-active-labor-market-policies-in-developing-countries-a-critical-review-of-recent-evidence http://hdl.handle.net/10986/26352 English en_US Policy Research Working Paper;No. 8011 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
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Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English en_US |
topic |
LABOR MARKET LABOR POLICY LABOR REGULATIONS VOCATIONAL TRAINING WAGE SUBSIDIES JOB SEARCH ASSISTANCE |
spellingShingle |
LABOR MARKET LABOR POLICY LABOR REGULATIONS VOCATIONAL TRAINING WAGE SUBSIDIES JOB SEARCH ASSISTANCE McKenzie, David How Effective Are Active Labor Market Policies in Developing Countries? : A Critical Review of Recent Evidence |
relation |
Policy Research Working Paper;No. 8011 |
description |
Jobs are the number one policy concern
of policy makers in many countries. The global financial
crisis, rising demographic pressures, high unemployment
rates, and concerns over automation all make it seem
imperative that policy makers employ increasingly more
active labor market policies. This paper critically examines
recent evaluations of labor market policies that have
provided vocational training, wage subsidies, job search
assistance, and assistance moving to argue that many active
labor market policies are much less effective than
policymakers typically assume. Many of these evaluations
find no significant impacts on either employment or
earnings. One reason is that urban labor markets appear to
work reasonably well in many cases, with fewer market
failures than is often thought. As a result, there is less
of a role for many traditional active labor market policies
than is common practice. The review then discusses examples
of job creation policies that do seem to offer promise, and
concludes with lessons for impact evaluation and policy is
this area. |
format |
Working Paper |
author |
McKenzie, David |
author_facet |
McKenzie, David |
author_sort |
McKenzie, David |
title |
How Effective Are Active Labor Market Policies in Developing Countries? : A Critical Review of Recent Evidence |
title_short |
How Effective Are Active Labor Market Policies in Developing Countries? : A Critical Review of Recent Evidence |
title_full |
How Effective Are Active Labor Market Policies in Developing Countries? : A Critical Review of Recent Evidence |
title_fullStr |
How Effective Are Active Labor Market Policies in Developing Countries? : A Critical Review of Recent Evidence |
title_full_unstemmed |
How Effective Are Active Labor Market Policies in Developing Countries? : A Critical Review of Recent Evidence |
title_sort |
how effective are active labor market policies in developing countries? : a critical review of recent evidence |
publisher |
World Bank, Washington, DC |
publishDate |
2017 |
url |
http://documents.worldbank.org/curated/en/256001490191438119/How-effective-are-active-labor-market-policies-in-developing-countries-a-critical-review-of-recent-evidence http://hdl.handle.net/10986/26352 |
_version_ |
1764461768966406144 |