Table 1 Relevant instruments, target groups, and intended effects of ALMPs
From: Active labor market programs - employment gain or fiscal drain?
Target area | Category (based on aims) | Instruments | Targeted workers | Intended effects |
|---|---|---|---|---|
Labor Demand | I. Provide Incentives for retaining employment | Work sharing and short work | Insiders | Reduce outflow from employment |
Wage subsidies | Retain labor market attachment | |||
II. Provide Incentives for creating employment | Outsiders | Increase inflow into employment | ||
Hiring subsidies | Increase labor market attachment | |||
Business start-up support | ||||
Labor Supply | III. Provide incentives for seeking and keeping a job | In-work benefits, subsidies, tax credits | Insiders and Outsiders | Increase inflow into employment by strengthening work incentives |
Reduce outflow from employment | ||||
Increase labor market attachment | ||||
Provide income support | ||||
Public works | Outsiders | Increase inflow into employment by strengthening work incentives | ||
Increase labor market attachment | ||||
Provide income support | ||||
Activation and Workfare | Outsiders | Increase inflow into employment by strengthening work incentives | ||
Sanctions | ||||
IV. Provide incentives for human capital enhancement | On-the-job training | Outsiders and Insiders | Increase inflow into employment | |
Classroom training | Increase productivity | |||
Improve match quality | ||||
Labor Market Matching | V. Improved labor market matching | Job search assistance | Outsiders | Improve job search efficiency |
Increase inflow into employment | ||||
Employer intermediation services | Outsider and insiders | Improve job search efficiency | ||
Improve match quality | ||||
Increase inflow into employment | ||||
Counseling and monitoring | Outsider | Improve job search efficiency | ||
Increase inflow into employment |