Active Labour Market Policy by a Profit-Maximizing Firm

Ruud Gerards, Joan Muysken and Riccardo Welters ()

British Journal of Industrial Relations, 2014, vol. 52, issue 1, 136-157

Abstract: This article investigates the effectiveness of an employment programme exclusively run by a private sector firm in order to find out whether such a programme can be beneficial to both the participating individuals and the private firm. To answer these questions, we use a unique dataset on a private employment programme covering 23 years of operations and data on 1,000 participating unemployed individuals. Using conservative estimates, we show that a private employment programme is more effective in reintegrating the unemployed than public efforts, while providing tangible benefits to the firm.

Date: 2014
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