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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Main Authors: Sergey Mazol, Aleh Mazol
Format: Article
Language:English
Published: Collegium of Economic Analysis, SGH Warsaw School of Economics 2025-06-01
Series:Gospodarka Narodowa. The Polish Journal of Economics
Subjects:
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.
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publisher Collegium of Economic Analysis, SGH Warsaw School of Economics
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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
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