Active Labour Market Policy by a Profit‐Maximizing Firm

22 Pages Posted: 11 Feb 2014

See all articles by Ruud Gerards

Ruud Gerards

Maastricht University - Research Centre for Education and the Labour Market (ROA)

Joan Muysken

University of Maastricht

Riccardo Welters

James Cook University

Date Written: March 2014

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.

Suggested Citation

Gerards, Ruud and Muysken, Joan and Welters, Riccardo, Active Labour Market Policy by a Profit‐Maximizing Firm (March 2014). British Journal of Industrial Relations, Vol. 52, Issue 1, pp. 136-157, 2014. Available at SSRN: https://ssrn.com/abstract=2393738 or http://dx.doi.org/10.1111/j.1467-8543.2012.00915.x

Ruud Gerards (Contact Author)

Maastricht University - Research Centre for Education and the Labour Market (ROA) ( email )

P.O. Box 616
Maastricht, MD6200
Netherlands

HOME PAGE: http://www.ruudgerards.nl

Joan Muysken

University of Maastricht ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Riccardo Welters

James Cook University

Cairns, Queensland 4878
Australia

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