Impact and Process Evaluations in Selected European Countries
- Labour Markets and Employment Policy series
Edited by Jaap de Koning and Hugh Mosley
Chapter 5: The impact of active labour market policy on job hirings and unemployment in the Netherlands
5. The impact of active labour market policy on job hirings and unemployment in the Netherlands Jaap de Koning and Marike Arents 1 INTRODUCTION This chapter focuses on the impact of active labour market policies (ALMP) on job hirings and unemployment in the Netherlands. Using data on the regional level for a number of years, we use simple models to investigate whether ALMP contributes to more job hirings from unemployment and to decreasing unemployment. Since unemployment of long duration is particularly troublesome, special attention is given to long-term unemployment and the transition from long-term unemployment to employment. Long-term unemployment is strongly related to social exclusion. If ALMP contributes to a reduction in long-term unemployment, it would also be effective in combating social exclusion. During the 1990s the Netherlands came to be regarded as an example of good practice in both economic and labour market policy. Economic growth reached higher levels than in most other industrialized countries and the ofﬁcial unemployment rate dropped to a level which had not been seen since the 1970s. However, when we take a closer look it becomes clear that we are still very far from a solution to the unemployment problem. First of all it is important to note that the ofﬁcial unemployment ﬁgure strongly underestimates the unemployment problem. The reason for this is that many people with an unemployment beneﬁt are not counted as unemployed ofﬁcially. Beneﬁciaries over a certain age are not obliged to apply for jobs. Moreover,...
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