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

2. 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 July 2015.

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

4. When they work and when they do not The targeting (micro) perspective1. 2. 3.
Would have got a job anyway

5. When they work and when they do not The targeting (micro) perspective1. 2. 3.
The measure lifts them up to a job
Would have got a job anyway

6. When they work and when they do not The targeting (micro) perspective1. 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

7. 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

8. 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”

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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 (-)

17. 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)

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