Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/142405 
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers No. 9966
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
Labour market institutions are deemed to have a great influence on the level and structure of employment. This holds for regulation on employment protection, minimum wages or tax/benefit systems as well as active labour market policies. This is why policy makers implement labour market reforms in order to stimulate job creation. The hope linked to labour market reforms is a sustainable reduction of structural and cyclical unemployment. This chapter reviews major approaches and findings on the evaluation of the impact of different labour market institutions but pays particular attention to active labour market policies that play an important role in the portfolio of economic policy makers in many OECD countries for several decades. Rigorous evaluation in this field has grown rapidly since the early 2000s. Describing concrete evaluation studies we focus on the important role of good data, methodological problems and discuss the impact on participants as well as possible effects on non-participants. We further describe how to investigate whether a programme also achieved positive net effects at a macroeconomic level. Finally, we have a closer look on policy implications and interactions with other institutional features.
Subjects: 
active labour market policies
evaluation
labour market institutions
employment protection
JEL: 
J08
J65
J68
Document Type: 
Working Paper

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