Suchergebnisse

Abstract
We investigate the macroeconomic impact of public expenditure in active labor market policies (ALMPs) and passive labor market policies (PLMPs) on main employment indicators (i.e., unemployment, employment, and labor force participation) for a large and novel panel database of 121 countries (36 developed, 64 emerging and 21 developing economies). Compared to previous studies, we include for the first time evidence from developing and emerging economies and explicitly examine the possible presence of complementarities between active and passive policies. We find that the interaction between interventions is crucial, as the effect of spending in either of the two policies is more favorable the more is spent on the other. Even the detrimental labor market effects of passive policies disappear on the condition that sufficient amounts are spent on active interventions. This complementarity seems even more important for emerging and developing economies.

Chapter 4 reviews changes in employment regulation in 63 countries over the past two decades, focusing on changes in the regulation of different forms of employment (in particular agency, fixed‐term, and part‐time work) and employment protection law (EPL).The most distinct changes, globally and especially in Europe, have been the increases in the relative strength of labour regulation that requires equal treatment for workers in agency, fixed‐term and part‐time work. Since the crisis, however, the relative strength of EPL fell in both developing countries and the EU. In the EU, decreases were driven largely by changes to notice periods for dismissal, and to the calculation of redundancy compensation. In the same period, on average, other advanced and emerging economies continued to slightly increase their overall level of EPL.The chapter also analyses the effects of labour regulation and changes in regulation on key labour market indicators including the unemployment rate, the labour force participation rate and the employment to population ratio. The analysis presented in the chapter highlights that there are no negative effects from increased labour regulation. This also confirms the findings of previous studies that showed there was no statistically significant effect between the strength of labour regulation and employment levels.