December 2000

IZA DP No. 236: Evaluation of Active Labour Market Policy: Methodological Concepts and Empirical Estimates

published in: Becker, I., Ott, N. and Rolf, G. (eds.), Soziale Sicherung in einer dynamischen Gesellschaft, Campus-Verlag, Frankfurt, 583-617, 2001

Persistently high unemployment, tight government budgets and the growing scepticism regarding the effects of active labour market policies (ALMP) are the basis for a growing interest in evaluating these measures. This paper intends to explain the need for evaluation on the micro- and macroeconomic level, introduce the fundamental evaluation problem and solutions to it, give an overview of the newer developments in evaluation literature and finally take a look on empirical estimations of ALMP effects.