Temporary active labour market programmes - potential effects on unemployment

Outi Aarnio
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Outi Aarnio: Department of Economics, Åbo Akademi University, Finland and School of Social Sciences, University of Bath, Claverton Down, Bath, UK

Finnish Economic Papers, 1993, vol. 6, issue 1, 13-24

Abstract: This paper assesses the potential effects of temporary active labour market programmes on unemployment and regular employment. The effect of such programmes is analysed in the framework of a (partial) flow equilibrium model, which explicitly takes into account the potential changes in the programme participants' probability of gaining regular work and/or changes in the average length of future employment contracts of the programme participants (average separation rate). We will also discuss the potential wage setting effects of active labour market policies and indicate how the equilibrium unemployment may be affected.

JEL-codes: J63 J64 J68 (search for similar items in EconPapers)
Date: 1993
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:fep:journl:v:6:y:1993:i:1:p:13-24

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