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What Works, Who Works? The Employment and Earnings Effects of Active Labour Market Programmes among Young People in Ireland

Author

Listed:
  • Philip J. O'Connell

    (Economic and Social Research Institute, Dublin)

  • Frances McGinnity

    (The Economic and Social Research Institute 4 Burlington Road, Dublin 4 Ireland)

Abstract

The international literature on active labour market programmes has generated inconsistent and confusing, but generally pessimistic, conclusions regarding their impact on the employment prospects of participants. This paper argues that much of this confusion is due to a general lack of attention to qualitative differences between programmes. The paper develops a typology of active labour market programmes, differentiating between training and employment measures on the basis of their orientation to the labour market and argues that programmes with a strong orientation to the market are more likely to improve the job prospects of participants than those characterised by weak market linkages. That hypothesis is tested using the results of a survey of young participants in labour market programmes in Ireland. The analysis shows that programmes with strong linkages to the labour market both enhance the employment prospects of their participants and increase their earnings, even when we take account of relevant individual characteristics such as education and previous labour market experience.

Suggested Citation

  • Philip J. O'Connell & Frances McGinnity, 1997. "What Works, Who Works? The Employment and Earnings Effects of Active Labour Market Programmes among Young People in Ireland," Work, Employment & Society, British Sociological Association, vol. 11(4), pages 639-661, December.
    • Handle: RePEc:sae:woemps:v:11:y:1997:i:4:p:639-661
    DOI: 10.1177/0950017097114003
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    References listed on IDEAS

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    1. Dolton, Peter J & Makepeace, Gerald H & Treble, John G, 1994. "The Youth Training Scheme and the School-to-Work Transition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 629-657, October.
    2. Breen, Richard, 1991. "Education, Employment And Training In The Youth Labour Market," Research Series, Economic and Social Research Institute (ESRI), number GRS152.
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    4. Bassi, Laurie J, 1984. "Estimating the Effect of Training Programs with Non-Random Selection," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 36-43, February.
    5. Keith Whitfield & Constantine Bourlakis, 1991. "An Empirical Analysis of YTS, Employment and Earnings," Journal of Economic Studies, Emerald Group Publishing, vol. 18(1), pages 42-56, January.
    6. Gary Burtless, 1985. "Are Targeted Wage Subsidies Harmful? Evidence from a Wage Voucher Experiment," ILR Review, Cornell University, ILR School, vol. 39(1), pages 105-114, October.
    7. Card, David & Sullivan, Daniel G, 1988. "Measuring the Effect of Subsidized Training Programs on Movements in and out of Employment," Econometrica, Econometric Society, vol. 56(3), pages 497-530, May.
    8. Breen, R. & Halpin, B., 1989. "Subsidising Jobs: An Evaluation of the Employment Incentive Scheme," Research Series, Economic and Social Research Institute (ESRI), number GRS144.
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    10. Couch, Kenneth A, 1992. "New Evidence on the Long-Term Effects of Employment Training Programs," Journal of Labor Economics, University of Chicago Press, vol. 10(4), pages 380-388, October.
    11. O'Higgins, Niall, 1994. "YTS, Employment, and Sample Selection Bias," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 605-628, October.
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    Cited by:

    1. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.

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