Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104985
Authors: 
Martin, John P.
Year of Publication: 
2014
Series/Report no.: 
IZA Policy Paper 84
Abstract: 
Activation policies aimed at getting working-age people off benefits and into work have become a buzzword in labour market policies. Yet they are defined and implemented differently across OECD countries and their success rates vary too. The Great Recession has posed a severe stress test for these policies with some commentators arguing that they are at best "fair weather" policies. This paper sheds light on these issues mainly via the lens of recent OECD research. It presents the stylized facts on how OECD countries have responded to the Great Recession in terms of ramping up their spending on active labour market policies (ALMPs), a key component in any activation strategy. It then reviews the macroeconomic evidence on the impact of ALMPs on employment and unemployment rates. This is followed by a review of the key lessons from recent OECD country reviews of activation policies. It concludes with a discussion of crucial unanswered questions about activation.
Subjects: 
activation
active labour market policies
Great Recession
unemployment insurance
benefit conditionality
JEL: 
J01
J08
J68
Document Type: 
Working Paper

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