Submitted by SPH DIGITAL on

Active Labour Market Policies/Programmes (ALMPs) include a range of interventions such as training, employment incentives, and subsidized employment, with Public Employment Services (PES) being a central element. PES typically provide intermediation services for jobseekers and employers, disseminate labor market information, and coordinate other ALMPs like training programs. ALMPs differ from passive labor market measures, which involve unemployment benefits or cash transfers. In many countries, PES administer these benefits and combine them with active measures, particularly where passive programs are more generous. In Latin America and the Caribbean (LAC), countries invest in ALMPs and PES, particularly focusing on youth training, but overall spending on active and passive measures remains below OECD averages. Empirical studies on ALMP effectiveness suggest that well-targeted and well-funded programs are more successful. PES services tend to show small but positive short-term impacts, while training programs often exhibit long-term benefits, such as increased employment formality in LAC. Other programs show variable results. The main question is not whether ALMPs work, but how they can be designed to address the needs of specific groups in different contexts. Evidence shows that aligning ALMPs with socio-economic conditions and including ongoing evaluation and adaptation are key to improving outcomes. Thus, a focus on program design, participant selection, and performance management is crucial to ensure the effectiveness of ALMPs across different labor market environments

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How Effective are Active Labour Market Policies and Public Employment Services?: Lessons for Latin America and the Caribbean
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English