Does Active Labour Market Policy Work? Lessons from the Swedish Experiences

61 Pages Posted: 22 Apr 2002

See all articles by Lars Calmfors

Lars Calmfors

Research Institute of Industrial Economics; IIES

Anders Forslund

IFAU - Institute for Labour Market Policy Evaluation; Uppsala University

Maria Hemstrom

IFAU - Institute for Labour Market Policy Evaluation

Date Written: February 2002

Abstract

The Swedish experiences of the 1990s provide a unique example of how large-scale active labor market programmes (ALMPs) have been used as a means to fight high unemployment. This paper surveys the empirical studies of the effects of ALMPs in Sweden. On the whole, ALMPs have probably reduced open unemployment, but also reduced regular employment. The overall policy conclusion is that ALMPs of the scale used in Sweden in the 1990s are not an efficient means of employment policy. To be effective, ALMPs should be used on a smaller scale.

JEL Classification: J68, H53

Suggested Citation

Calmfors, Lars and Forslund, Anders and Hemstrom, Maria, Does Active Labour Market Policy Work? Lessons from the Swedish Experiences (February 2002). CESifo Working Paper Series No. 675; IFAU Working Paper No. 2002:4. Available at SSRN: https://ssrn.com/abstract=305360

Lars Calmfors (Contact Author)

Research Institute of Industrial Economics ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden
+46761355814 (Phone)

IIES ( email )

Stockholm, SE-10691
Sweden
+468163076 (Phone)

Anders Forslund

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden
018 471 70 76 (Phone)

Uppsala University ( email )

Uppsala, SE-751 20
Sweden

Maria Hemstrom

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden
018 471 70 85 (Phone)

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