Investment Approach to Active Labour Market Policy: How It Works for Employers and Employees
Governments often view labour market measures as primarily aimed at employees, but are employees truly the main beneficiaries of active labour market policies (ALMPs)? Unlike passive labour market policies, which provide direct payments to the unemployed, ALMPs can be seen as measures directed at em...
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| Format: | Article |
| Language: | English |
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Collegium of Economic Analysis, SGH Warsaw School of Economics
2025-06-01
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| Series: | Gospodarka Narodowa. The Polish Journal of Economics |
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| Online Access: | https://gnpje.sgh.waw.pl/Investment-Approach-to-Active-Labour-Market-Policy-How-It-Works-for-Employers-and,202284,0,2.html |
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| author | Sergey Mazol Aleh Mazol |
| author_facet | Sergey Mazol Aleh Mazol |
| author_sort | Sergey Mazol |
| collection | DOAJ |
| description | Governments often view labour market measures as primarily aimed at employees, but are employees truly the main beneficiaries of active labour market policies (ALMPs)? Unlike passive labour market policies, which provide direct payments to the unemployed, ALMPs can be seen as measures directed at employers. This paper proposes an investment-oriented approach to ALMP implementation, where the positive effects are primarily recognised by employers and appear in the years following implementation. Using a fixed-effects panel model with yearly data for 29 OECD countries, we find significant negative short-term effects and positive lagged effects of ALMPs on both total and corporate gross value added (GVA). These effects vary in magnitude, with the lagged effects outweighing the short-term ones. The influence of various ALMPs on employees’ GVA is mostly insignificant. |
| format | Article |
| id | doaj-art-7fd0f2df727247c69d3393c5ec62cf16 |
| institution | Kabale University |
| issn | 2300-5238 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Collegium of Economic Analysis, SGH Warsaw School of Economics |
| record_format | Article |
| series | Gospodarka Narodowa. The Polish Journal of Economics |
| spelling | doaj-art-7fd0f2df727247c69d3393c5ec62cf162025-08-20T03:29:35ZengCollegium of Economic Analysis, SGH Warsaw School of EconomicsGospodarka Narodowa. The Polish Journal of Economics2300-52382025-06-013222294810.33119/GN/202284202284Investment Approach to Active Labour Market Policy: How It Works for Employers and EmployeesSergey Mazol0https://orcid.org/0009-0005-0715-4875Aleh Mazol1https://orcid.org/0000-0002-4020-3991European Humanities University, LithuaniaBelarusian Economic Research and Outreach Center (BEROC), LithuaniaGovernments often view labour market measures as primarily aimed at employees, but are employees truly the main beneficiaries of active labour market policies (ALMPs)? Unlike passive labour market policies, which provide direct payments to the unemployed, ALMPs can be seen as measures directed at employers. This paper proposes an investment-oriented approach to ALMP implementation, where the positive effects are primarily recognised by employers and appear in the years following implementation. Using a fixed-effects panel model with yearly data for 29 OECD countries, we find significant negative short-term effects and positive lagged effects of ALMPs on both total and corporate gross value added (GVA). These effects vary in magnitude, with the lagged effects outweighing the short-term ones. The influence of various ALMPs on employees’ GVA is mostly insignificant.https://gnpje.sgh.waw.pl/Investment-Approach-to-Active-Labour-Market-Policy-How-It-Works-for-Employers-and,202284,0,2.htmlgross value addedactive labor market policieshuman capital investmentscompensation of employeesfixed effects panel regression |
| spellingShingle | Sergey Mazol Aleh Mazol Investment Approach to Active Labour Market Policy: How It Works for Employers and Employees Gospodarka Narodowa. The Polish Journal of Economics gross value added active labor market policies human capital investments compensation of employees fixed effects panel regression |
| title | Investment Approach to Active Labour Market Policy: How It Works for Employers and Employees |
| title_full | Investment Approach to Active Labour Market Policy: How It Works for Employers and Employees |
| title_fullStr | Investment Approach to Active Labour Market Policy: How It Works for Employers and Employees |
| title_full_unstemmed | Investment Approach to Active Labour Market Policy: How It Works for Employers and Employees |
| title_short | Investment Approach to Active Labour Market Policy: How It Works for Employers and Employees |
| title_sort | investment approach to active labour market policy how it works for employers and employees |
| topic | gross value added active labor market policies human capital investments compensation of employees fixed effects panel regression |
| url | https://gnpje.sgh.waw.pl/Investment-Approach-to-Active-Labour-Market-Policy-How-It-Works-for-Employers-and,202284,0,2.html |
| work_keys_str_mv | AT sergeymazol investmentapproachtoactivelabourmarketpolicyhowitworksforemployersandemployees AT alehmazol investmentapproachtoactivelabourmarketpolicyhowitworksforemployersandemployees |