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Active labour market policy during the Covid-19 pandemic: Latent effects on Austrian jobseekers

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  • Julian Kettl
  • Bich Diem Thy Nguyen
  • Christian Grünhaus

Abstract

The Covid-19 pandemic induced an unprecedented shock to the Austrian labour market. Austria responded by implementing active labour market policies (ALMP) to facilitate the reintegration of individuals abruptly rendered unemployed. This article assesses the effects of a job search assistance and training programme on jobseekers within this context by utilizing a panel survey among participants. Drawing on Marie Jahoda‘s theory of latent deprivation, we examine how participation in the programme alleviates the adverse effects of unemployment. The results reveal significant improvements in professional competencies after participating in the programme. Participants reported marked reductions in psychological stress and overstrain. Finding work during the programme resulted in enhanced material living conditions and improved health outcomes.

Suggested Citation

  • Julian Kettl & Bich Diem Thy Nguyen & Christian Grünhaus, 2024. "Active labour market policy during the Covid-19 pandemic: Latent effects on Austrian jobseekers," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 50(2), pages 89-116.
    • Handle: RePEc:clr:wugarc:y:2024v:50i:2p:89
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    References listed on IDEAS

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    1. Bruno Crépon & Gerard J. van den Berg, 2016. "Active Labor Market Policies," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 521-546, October.
    2. Day Manoli & Ankur Patel, 2019. "Long-Term Treatment Effects of Job Search Assistance and Training: A Summary of Recent Evidence," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 340-343, May.
    3. Helmut Hofer & Andrea Weber, 2006. "Active Labor Market Policy in Austria: Practice and Evaluation Results," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 155-167.
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