27/04/2019 How do active labour market policies work? Ideas for future policy relevant research Giuliano Bonoli IDHEAP

ALMPs can exploit three effects 27/04/2019 ALMPs can exploit three effects Invest in human capital Lower the reservation wage Improve the matching in the job search process

Job matching in real labour markets Informal contacts and networks tend to play an important role This role is particularly important for the low skill segment, where few jobs are advertised openly The low skilled make up the bulk of activation clients

Informal source of information about current job by level of education Source: ISSP2001: Question “How did you first hear about your current job?” Percentage refer to those answering personal contacts and unsolicited applications

Most often used recruitment channels among employers recruiting in the low skill segment, (N = 38 in 6 EU countries) Source: RECWOWE TASK 01.22 | Diapositive 5 |

Informal networks and access to employment for jobless people Why are networks useful? Information, recommendation? What types of networks are most useful for unemployed people? How can policy promote the development of useful networks?