“Inclusive labour markets: a European perspective.” Pobal Conference: Creating an Inclusive Labour Market “Inclusive labour markets: a European perspective.” Donald Storrie Eurofound

Reviews of active labour market policies (ALMP) Matching & counselling, training, job subsidies etc. John P. Martin and David Grubb (2001) “What works and for whom: A review of OECD countries’ experiences with active labour market policies” Swedish Economic policy Review 8 (2001) 9-56 David Card & Jochen Kluve & Andrea Weber (2010). “Active labour market policy evaluations: A meta analysis"," Economic Journal, Royal Economic Society, vol. 120(548), pages F452-F477, November David Card, Jochen Kluve, Andrea Weber (2015) “What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations” IZA DP No. 9236 July 2015.

When they work and when they do not The targeting (micro) perspective 1. 2. 3.

When they work and when they do not The targeting (micro) perspective 1. 2. 3. Would have got a job anyway

When they work and when they do not The targeting (micro) perspective 1. 2. 3. The measure lifts them up to a job Would have got a job anyway

When they work and when they do not The targeting (micro) perspective 1. 2. 3. The measure lifts them up to a job The measure not enough to lift up to a job Would have got a job anyway

Limitation of micro evaluations Do not capture substitution effects “The target group (young people) got more jobs than the control group (also young people) but this led to fewer older workers getting a job.”   This can be socially motivated

Results of meta analysis of ALMP 1. Overall ALMP's have relatively small (zero?) effects in the short run (less than a year). Somewhat larger effects in the medium run (1-2 years) & longer run (2+ years).   2. Time profile varies with the type of ALMP. - Search assistance (and sanction) programs relatively large short term impacts. - Training and private sector job subsidies - smaller short but larger in longer run. - Public sector job subsidies tend to have negligible or even negative impacts. But …… 3. Larger effects for women and long term unemployed and smaller effects for older workers and the young. - Matching and counselling relatively good for disadvantaged (human capital measures less effective) - Training and private sector job subsidies good for long term unemployed OECD Activation studies - low (no?) effects for those “furthest from the labour market”

1. 2. 3. The measure lifts them up to a job The measure not enough to lift up to a job Would have got a job anyway

Long term unemployed (and women) Those furthest from labour market Many unemployed are in Long term unemployed (and women) Those furthest from labour market 1. 2. 3. 1. 2. 3. The measure lifts them up to a job The measure not enough to lift up to a job Would have got a job anyway

Eurofound - forthcoming 2017Q1 “Does reducing non‐wage labour costs generate sustainable new employment – a review of evaluations” Actions targeted to particular groups of workers (not particular firms or sectors) have stronger impacts. (+) long term unemployed, women (-) youth & older workers

Training and older workers? Increasingly important issue with pace of technological change and ageing societies (-) Fluidity of cognitive abilities and shorter payback time But there is a role for Work integrated and especially on the job cognitive decline can be delayed Self-paced Communication and management skills Older worker lower motivation Economic (investment and payback) Attitudes and stereotypes (the “average” older person), flexibility in targeting

What works for Immigrants? training, job search assistance, wage subsidies and subsidised public sector employment. Only positive effects for wage subsidies. They are not much used Why they work? A job and language & other job related integration positives Counters discrimination There probably are significant substitution effects These might be “socially acceptable”. Immigrants are those with foreign citizenship, the foreign-born or individuals whose parents or grandparents were foreign-born. “What active labour market programmes work for immigrants in Europe? A meta-analysis of the evaluation literature” By Sebastian Butschek and Thomas Walter IZA Journal of Migration (2014) 3:48

Female family reunion and refugees Labour migrants male female family reunion Male refugees Very different starting levels Much catch up over time Probably never up to same level Notice the big female catch-up Female family reunion and refugees

They do catch up after many years, women - big catch up Male refugees Labour migrants male female family reunion They do catch up after many years, women - big catch up Male refugees Very different starting levels Much catch up over time Probably never up to same level Notice the big female catch-up Female family reunion and refugees

Refugees (i) Why poorer employment outcomes than for other migrants? Often culturally more distant than other migrants; language, culture, discrimination, skills (?) Unlike labour migrants, not “labour market ready” – ability & suitability to work Often an uncertain, long and damaging initial period in new country The obvious Basic language & civic orientation courses - recent Nordic evidence suggests - make them short! Major policy commitment for those with serious problems, - health, trauma etc. Targeting (& individual approaches) Resettlemet (+) Reallocation (-)

Refugees (ii) Measures that address their specific problems A job is also a social and cultural integration device Host country geographical mobility promotion even at risk of “ghettos” (location of accommodation versus location of jobs) Validation & accreditation A “jobs first” approach Strong evidence of Work placement and job subsidies (Denmark) Promising initiatives in - Finland, Work Trial (job bridge?) & temp agencies - Apprenticeships for young refugees (Austria) (Some positive results on self employment support (DE)) Language, culture, social integration, skills assessment (formal accreditation often not enough)

Forthcoming Eurofound Publication “Approaches to labour market integration of refugees and asylum seekers” December 2016