Active labour market policy in OECD countries : development tendencies and effects

Abstract

"In 1994 the OECD countries spent an average of almost 1% of their particular gross domestic product (GDP) on putting into effect labour market policy objectives. Astonishing differences can, however, be seen between the countries. The size of the expenditure (in each case expressed as a percentage of the GDP) ranged from the peak of 2.89% in Sweden to the minimum of 0.09% in Japan. The figure for Germany according to OECD statistics was still 1.32%. In the political debate there are some voices pleading for an expansion of active labour market policy, and others speaking for a heavy restriction of these measures. A prerequisite for an assessment of active labour market policy and the related expenditure is, however, the ability to assess the success of these instruments. On the basis of an international comparison, this article deals in particular with the possibilities and limitations of active labour market policy in solving labour market problems. In an initial step, possible connections between general economic labour market indicators (such as unemployment rates, proportion of long-term unemployed) and the total expenditure on labour market policy measures are examined. In the second step, demand-orientated and supply-orientated types of policy are dealt with in more detail, as well as internationally available evaluation results on this matter. The results suggest that the employment policy starting points of active measures are not so much at a general economic level (measured against macro indicators). These results must not, however, lead to the individual and therefore microeconomic dimension of active labour market policy moving out of the focus of attention, e.g. avoiding the devaluation of human capital through participation in labour market policy measures, or a new human capital being built up. Active labour market policy should therefore be understood first and foremost as an aid to integration. It would depend on the limited resources for labour market policy available from the national economy being utilised as sensibly as possible for the integration of otherwise hard-to-place people. Because the different needs and problems of each individual case require the ability to offer 'tailor-made' solutions, in particular local labour market policy requires a set of flexible instruments which can be bound together to form individual programme packages." (Author's abstract, IAB-Doku) ((en))

Cite article

Walwei, U. (1996): Aktive Arbeitsmarktpolitik in OECD-Ländern. Entwicklungstendenzen und Effekte. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 29, No. 3, p. 349-362.