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What Works for Active Labor Market Policies?

 
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Author
Levy Yeyati, EduardoHARVARD
Montane, Martin
Sartorio, LucaHARVARD
Published Version
https://www.hks.harvard.edu/centers/cid/publications
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Citation
Levy Yeyati, Eduardo, Martin Montane, and Luca Sartorio. “What Works for Active Labor Policies?” CID Working Paper Series 2019.358, Harvard University, Cambridge, MA, July 2019.
Abstract
The past 5 years have witnessed a flurry of RCT evaluations that shed new light on the impact and cost effectiveness of Active Labor Market Policies (ALMPs) aiming to improve workers´ access to new jobs and better wages. We report the first systematic review of 102 RCT interventions comprising a total of 652 estimated impacts. We find that (i) a third of these estimates are positive and statistically significant (PPS) at conventional levels; (ii) programs are more likely to yield positive results when GDP growth is higher and unemployment lower; (iii) programs aimed at building human capital, such as vocational training, independent worker assistance and wage subsidies, show significant positive impact, and (iv) program length, monetary incentives, individualized follow up and activity targeting are all key features in determining the effectiveness of the interventions.
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This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page
https://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37366396

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