É urgente investir numa nova geração de medidas activas de emprego que respondam positivamente às necessidades do mercado de trabalho
The main conclusions are:
1. Job searching assistance, counselling/meeting case, achieves positive impacts in the short run. This is the cheapest ALMP but requires solid Employment Services and the effect can be limited when cyclical unemployment is high due an economic downturn or when job offers do not flourish.
2. Training programmes achieve positive impacts in the medium run and long run more than in the short run. The main risk is the lock-in effect and the failure in the design of the programme due an inappropiate contents or the absence of training activities on the job.
3. Subsidized employment has not a significant impact. The deadweight loss and substitution effect are present in the literature review. However, this is the ALMP which captures the higher ratio of the Spanish ALMP Budget.
4. Public Employment Programmes has not significant impact in improving the employment outcomes of the participants after their participation. It is a clear social protection scheme but the empirical evidence does not justify this ALMP in terms of long term employment outcomes unless the programme includes training components. However, this is one of the main ALMP used during the economical crisis in Spain (Plan E or the ancient programme defined as Colaboraciones sociales¨)
5. Entrepeneurship Incentives has a positive effect in older unemployed workers and well educated but must be balanced with the bussiness rate of survival. More impact evaluation research in this field must be done due the development stage of this ALMP in Spain.
6. There is not significant evidence of differential effects on men versus women, so the effect of the ALMP are not biased for gender which is a good news because it means that the effect of the ALMP (positive or negative) affects in the same way to women or men.
7. ALMP tailored to the youth are performing worse than ALMP designed for general unemployers. The evidence suggest the importance of promoting preventive actions with a wider scope than the ALMP such as Education and Social Inclusion.
To sum up, the real challenge is to be able to develope a comprehensive system that take into account the economic features of the Balearic Islands and also look for the impact evidence of the ALMP. This system will help the policymakers to take right decisions and will make worthy the public money. It is time to invest in a new generation of tailored ALMP that responds positively the needs of the labour market and above all, designed in line with the empirical evidence.
In “Active Labour Market Policies: empirical evidence and Spain”
Thanks for read my post. I will be happy if we can starts a chat about ALMP issues in Protugal or Spain
All the best