View metadata

dc.titleHow Effective are Active Labour Market Policies and Public Employment Services?: Lessons for Latin America and the Caribbean
dc.contributor.authorNunn, Alex
dc.contributor.orgunitLabor Markets Division
dc.coverageLatin America
dc.coverageThe Caribbean
dc.date.available2024-09-25T00:09:00
dc.date.issue2024-09-25T00:09:00
dc.description.abstractActive Labour Market Policies/Programmes (ALMPs) include a range of interventions such as training, employment incentives, and subsidized employment, with Public Employment Services (PES) being a central element. PES typically provide intermediation services for jobseekers and employers, disseminate labor market information, and coordinate other ALMPs like training programs. ALMPs differ from passive labor market measures, which involve unemployment benefits or cash transfers. In many countries, PES administer these benefits and combine them with active measures, particularly where passive programs are more generous. In Latin America and the Caribbean (LAC), countries invest in ALMPs and PES, particularly focusing on youth training, but overall spending on active and passive measures remains below OECD averages. Empirical studies on ALMP effectiveness suggest that well-targeted and well-funded programs are more successful. PES services tend to show small but positive short-term impacts, while training programs often exhibit long-term benefits, such as increased employment formality in LAC. Other programs show variable results. The main question is not whether ALMPs work, but how they can be designed to address the needs of specific groups in different contexts. Evidence shows that aligning ALMPs with socio-economic conditions and including ongoing evaluation and adaptation are key to improving outcomes. Thus, a focus on program design, participant selection, and performance management is crucial to ensure the effectiveness of ALMPs across different labor market environments
dc.format.extent71
dc.identifier.doihttp://dx.doi.org/10.18235/0013185
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/How-Effective-are-Active-Labour-Market-Policies-and-Public-Employment-Services-Lessons-for-Latin-America-and-the-Caribbean.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectLabor
dc.subjectSkills
dc.subjectLabor Market
dc.subjectLabor Force
dc.subjectEconomy
dc.subjectLabor Market Policy
dc.subjectEquality
dc.subjectHuman Capital
dc.subjectTraining and Development
dc.subjectEmployment Service
dc.subjectJob Training Program
dc.subjectLabor Supply
dc.subjectUnemployment Insurance
dc.subjectFormal Labor
dc.subjectOccupational Skill
dc.subject.jelcodeH53 - Government Expenditures and Welfare Programs
dc.subject.jelcodeI38 - Government Policy • Provision and Effects of Welfare Programs
dc.subject.jelcodeJ08 - Labor Economics Policies
dc.subject.jelcodeJ21 - Labor Force and Employment, Size, and Structure
dc.subject.jelcodeJ68 - Public Policy
dc.subject.jelcodeO15 - Human Resources • Human Development • Income Distribution • Migration
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.keywordsActive Labor Market Policies;public employment services;employment incentives;Training Programs;labor market dynamics;unemployment benefits;labor market interventions;skills mismatch;formal employment;workforce development
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-02986
idb.operationRG-T3541
Return to Publication