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Youth unemployment and active labor market policies in Europe

  • Since the economic crisis in 2008, European youth unemployment rates have been persistently high at around 20% on average. The majority of European countries spends significant resources each year on active labor market programs (ALMP) with the aim of improving the integration prospects of struggling youths. Among the most common programs used are training courses, job search assistance and monitoring, subsidized employment, and public work programs. For policy makers, it is of upmost importance to know which of these programs work and which are able to achieve the intended goals – may it be the integration into the first labor market or further education. Based on a detailed assessment of the particularities of the youth labor market situation, we discuss the pros and cons of different ALMP types. We then provide a comprehensive survey of the recent evidence on the effectiveness of these ALMP for youth in Europe, highlighting factors that seem to promote or impede their effectiveness in practice. Overall, the findings with respect toSince the economic crisis in 2008, European youth unemployment rates have been persistently high at around 20% on average. The majority of European countries spends significant resources each year on active labor market programs (ALMP) with the aim of improving the integration prospects of struggling youths. Among the most common programs used are training courses, job search assistance and monitoring, subsidized employment, and public work programs. For policy makers, it is of upmost importance to know which of these programs work and which are able to achieve the intended goals – may it be the integration into the first labor market or further education. Based on a detailed assessment of the particularities of the youth labor market situation, we discuss the pros and cons of different ALMP types. We then provide a comprehensive survey of the recent evidence on the effectiveness of these ALMP for youth in Europe, highlighting factors that seem to promote or impede their effectiveness in practice. Overall, the findings with respect to employment outcomes are only partly promising. While job search assistance (with and without monitoring) results in overwhelmingly positive effects, we find more mixed effects for training and wage subsidies, whereas the effects for public work programs are clearly negative. The evidence on the impact of ALMP on furthering education participation as well as employment quality is scarce, requiring additional research and allowing only limited conclusions so far.show moreshow less

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Metadaten
Author:Marco CaliendoGND, Ricarda Schmidl
URN:urn:nbn:de:kobv:517-opus4-436950
DOI:https://doi.org/10.25932/publishup-43695
ISSN:2193-9004
Parent Title (German):Postprints der Universität Potsdam : Wirtschafts- und Sozialwissenschaftliche Reihe
Series (Serial Number):Postprints der Universität Potsdam : Wirtschafts- und Sozialwissenschaftliche Reihe (125)
Document Type:Postprint
Language:English
Date of first Publication:2020/05/20
Year of Completion:2016
Publishing Institution:Universität Potsdam
Release Date:2020/05/20
Tag:active labor market policies; evaluation; job search; training; youth unemployment
Issue:125
Pagenumber:32
Source:IZA Journal of Labor Policy 5 (2016) 1 DOI: 10.1186/s40173-016-0057-x
Organizational units:Wirtschafts- und Sozialwissenschaftliche Fakultät
Dewey Decimal Classification:3 Sozialwissenschaften / 32 Politikwissenschaft / 320 Politikwissenschaft
3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Peer Review:Referiert
Publication Way:Open Access
Licence (German):License LogoCreative Commons - Namensnennung, 4.0 International