Can training and employment subsidies combat European unemployment?

Abstract:

European countries with poorly performing labour markets and labour market institutions conducive to high unemployment also feature considerable expenditures on active labour market policy, and such policies are emphasised by the European Union's employment strategy. However, the practice of these programmes' evaluation is much less well developed in Europe than in the United States. We outline key issues facing such evaluation and offer a review and formal assessment of European evaluation studies over the last three decades. We find that programme effects are very heterogeneous across types of interventions and target groups, that training and job search assistance can be effective, and that the young among the unemployed are typically difficult to assist.