A simultaneous-equation model of active labour market policies and change in unemployment rate: evidence from OECD countries

Marwa Sahnoun and Chokri Abdennadher

Policy Studies, 2022, vol. 43, issue 1, 3-20

Abstract: The purpose of this article is to investigate the nexus between Active Labour Market Policies (ALMP) and change in unemployment rate. A dynamic simultaneous-equation panel data models have been applied to 16 OECD countries studied over the 2000–2015 period. Our results indicate that the ALMP expenditure leads to the reduction of the change in unemployment. The ALMPs appear to be efficient in reducing the unemployment rate in these countries. Besides, any increase of the change in unemployment rate leads to the decrease of the ALMP expenditure. This occurs in connection to the high costs of the active spending during periods of recession and to the pressure it makes to provide a continuous income to the unemployed through unemployment benefits.

Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/01442872.2020.1754384 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:cposxx:v:43:y:2022:i:1:p:3-20

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/cpos20

DOI: 10.1080/01442872.2020.1754384

Access Statistics for this article

Policy Studies is currently edited by Toby James

More articles in Policy Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().