Author:
Juan González Alegre University of Málaga, and Department of Applied Economics of Autonomous University of Barcelona, Spain

Search for other papers by Juan González Alegre in
Current site
Google Scholar
PubMed
Close
Restricted access

This paper evaluates the efficiency of Active Labour Market Policies (ALMPs) in the European Union (EU). The paper first reviews the main trends governing the evolution of the European Social Fund (ESF) since its creation. The ESF promotes public expenditure in ALMPs in order to foster social cohesion across the EU. In order to test to what extent this strategy can be backed up by facts, we estimate the impact of public expenditure on ALMPs on the employment rate using panel data from 28 European countries (1985–2011), taking into account the endogeneity of the explanatory variables and the dynamic behaviour of their relationship. Results support the hypothesis that expenditure in ALMPs is more beneficial for employment than aggregate public expenditure. In addition, we show that periphery countries observe a larger efficiency of their ALMPs. These results support the recent policy strategy undertaken by the European Commission to raise the budget devoted to ESF in Member States experiencing higher unemployment rates.

  • Afonso, A.González-Alegre, J. (2011): Economic Growth and Budgetary Components: A Panel Assessment for the EU. Empirical Economics, 41(3): 703723.

    • Search Google Scholar
    • Export Citation
  • Altavilla, C.Caroleo, F. E. (2006): Evaluating the Dynamic Effects of Active Labour Policies in Italy. Labour, 20(2): 349382.

  • Arellano, M.Bond, S. (1991): Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. Review of Economic Studies, 58(2): 227297.

    • Search Google Scholar
    • Export Citation
  • Arellano, M.Bover, O. (1995): Another Look at the Instrumental Variables Estimation of Error- Component Models. Journal of Econometrics, 68(1): 2951.

    • Search Google Scholar
    • Export Citation
  • Baccaro, L.Rei, D. (2005): Institutional Determinants of Unemployment in OECD Countries: A Times-Series Cross-Section Analysis (1960–1998). International Institute for Labor Studies, Discussion Paper, No. 160, Geneva.

    • Search Google Scholar
    • Export Citation
  • Bache, I.George, S.Bulmer, S. (2011): Politics in the European Union. Oxford: Oxford University Press.

  • Basanini, A. (2008): The Impact of Labour Market Policies on Productivity in OECD Countries. International Productivity Monitor, 17: 315.

    • Search Google Scholar
    • Export Citation
  • Basanini, A.Duval, R. (2009): Unemployment Institutions, and Reform Complementarities: Re-Assessing the Aggregate Evidence for OECD Countries. Oxford Review of Economic Policy, 25(1): 4059.

    • Search Google Scholar
    • Export Citation
  • Becker, S. O.Egger, P. H.Von Ehrlich, M. (2010): Going NUTS: The Effect of EU Structural Funds on Regional Performance. Journal of Public Economics, 94(9): 578590.

    • Search Google Scholar
    • Export Citation
  • Blanchard, O.Wolfers, J. (2000): The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence. Economic Journal, 110(462): 133.

    • Search Google Scholar
    • Export Citation
  • Blundell, R.Bond, S. (1998): Initial Conditions and Moment Restrictions in Dynamic Panel Data Models. Journal of Econometrics, 87(1): 115143.

    • Search Google Scholar
    • Export Citation
  • Boone, J.Van Ours, J. C. (2009): Bringing Unemployment Back to Work: Effective Active Labour Market Policies. De Economist, 157(3): 293313.

    • Search Google Scholar
    • Export Citation
  • Calmfors, L.Forslund, A.Hemström, M. (2002): Does Active Labour Market Policies Work? Lessons from the Swedish Experiences. Institute for Labour Market Policy Evaluation Working Paper, No. 2002/4.

    • Search Google Scholar
    • Export Citation
  • Chapple, S. (1999): Displacement Effects of Active Labour Market Policy. Report for the Department of Labour. Wellington: NZ Institute of Economic Research.

    • Search Google Scholar
    • Export Citation
  • Elmeskov, J.Martin, J. P.Scarpetta, S. (1998): Key Lessons for Labour Market Reforms: Evidence from OECD Countries´ Experiences. Swedish Economic Policy Review, 5(2): 205252.

    • Search Google Scholar
    • Export Citation
  • Estevao, M. (2003): Do Active Labor Market Policies Increase Employment? IMF Working Paper Series, No. WP/03/234.

  • Estevao, M. (2007): Labor Policies to Raise Employment. IMF Staff Papers, 54(1): 113138.

  • European Commission (2007a): European Social Fund: 50 Years Investing In People. Luxembourg: Office for Official Publications of the European Communities.

    • Search Google Scholar
    • Export Citation
  • European Commission (2007b): Cohesion Policy 2007–13. Commentaries and Official Texts. Luxembourg: Office for Official Publications of the European Communities.

    • Search Google Scholar
    • Export Citation
  • European Commission (2007c): 18th Annual Report On The Implementation of the Structural Funds 2006. Commission Staff Working Document, No. COM(2007) 676 Final.

    • Search Google Scholar
    • Export Citation
  • European Commission (2010): The European Social Fund: Active Labour Market Policies and Public Employment Services. Background Report. Brussels.

    • Search Google Scholar
    • Export Citation
  • European Commission (2013): Promoting Jobs, Inclusion and Social Policy as an Investment. Luxemburg: Office for Official Publications of the European Communities.

    • Search Google Scholar
    • Export Citation
  • European Communities (1998): The European Social Fund. An Overview of the Programming Period 1994–1999. Luxembourg: Office for Official Publications of the European Communities.

    • Search Google Scholar
    • Export Citation
  • European Communities (2009): EU Budget 2008. Financial Report. Luxembourg: Office for Official Publications of the European Communities.

    • Search Google Scholar
    • Export Citation
  • Flaig, G.Rottmann, H. (2013): Labour Market Institutions and Unemployment: An International Panel Data Analysis. Empirica, 40:635654.

    • Search Google Scholar
    • Export Citation
  • Forslund, A.Krueger, A. (1997): An Evaluation of the Swedish Active Labor Market Policy: News and Received Wisdom. In: The Welfare State in Transition: Reforming the Swedish Model. Cambridge: National Bureau of Economic Research.

    • Search Google Scholar
    • Export Citation
  • Furceri, D.Zdzienicka, A. (2012): The Effects of Social Spending on Economic Activity: Empirical Evidence from a Panel of OECD Countries. Fiscal Studies, 33(1):129152.

    • Search Google Scholar
    • Export Citation
  • Hagen, T. (2003): Three Approaches to the Evaluation of Active Labour Market Policy in East Germany Using Regional Data. Centre for European Economic Research – ZEW, Discussion Paper, No. 03–27.

    • Search Google Scholar
    • Export Citation
  • Hujer, R.Caliendo, M. (2000): Evaluation of Active Labour Market Policy: Methodological Concepts and Empirical Estimates. Institute for the Study of Labour – IZA, Discussion Paper, No. 236.

    • Search Google Scholar
    • Export Citation
  • Hujer, R.Zeiss, C. (2003): Macroeconomic Impacts of ALMP on the Matching Process in West Germany. IZA Discussion Paper, No. 915.

  • Hujer, R.Caliendo, M.Zeiss, C. (2004): Macroeconomic Evaluation of Active Labour Market Policy. A Case Study for Germany. In: Descy, P.Tessaring, M. (eds): Impact of Education and Training. Third Report on Vocational Training Research in Europe. Luxembourg: Office for Official Publications of the European Communities.

    • Search Google Scholar
    • Export Citation
  • Im, K. S.Pesaran, M. H.Shin, Y. (2003): Testing for Unit Roots in Heterogenous Panels. Journal of Econometrics, 115(1): 5374.

    • Search Google Scholar
    • Export Citation
  • Jackman, R.Pissarides, C.Savouri, S. (1990): Labour Market Policies and Unemployment in the OECD. LSE – Centre for Economic Performance, Discussion Paper, No. 11.

    • Search Google Scholar
    • Export Citation
  • Judson, R. A.Owen, A. L. (1996): Estimating Dynamic Panel Data Models: A Practical Guide for Macroeconomists. Federal Reserve Board of Governors. Mimeo.

    • Search Google Scholar
    • Export Citation
  • Kneller, R.Bleaney, M. F.Gemmell, N. (1999): Fiscal Policy and Growth: Evidence from OECD Countries. Journal of Public Economics, 74(2): 171190.

    • Search Google Scholar
    • Export Citation
  • Layard, R.Nickell, S.Jackman, R. (1991): Unemployment: Macroeconomic Performance and the Labour-Market. Oxford: Oxford University Press.

    • Search Google Scholar
    • Export Citation
  • Mohl, P.Hagen, T. (2011): Do EU Structural Funds Promote Regional Employment? Evidence from Dynamic Panel Data Models. ECB, Working Papers, No 1403.

    • Search Google Scholar
    • Export Citation
  • Nickell, S.Layard, R. (1999): Labor Market Institutions and Economic Performance. In: Handbook of Labor Economics, 3(C), pp. 30293084.

    • Search Google Scholar
    • Export Citation
  • Nickell, S.Nunziata, L.Ochel, W. (2005): Unemployment in the OECD since the 1960s. What Do We Know? The Economic Journal, 115(1): 127.

    • Search Google Scholar
    • Export Citation
  • Nunziata, L. (2002): Unemployment, Labour Market Institutions and Shocks. Nuffield College, University of Oxford, Economics Papers, No. 2002–W16.

    • Search Google Scholar
    • Export Citation
  • OECD (1993): Economic Outlook. July, Paris.

  • Sachs, A. (2012): What Really Drives Unemployment? A Bayesian Approach to Determine the Impact of Institutions on the Unemployment Rate. Economic Bulletin, 32(1): 10081019.

    • Search Google Scholar
    • Export Citation
  • Scarpetta, S. (1996): Assessing the Role of Labour Market Policies and Institutional Settings of Unemployment: A Cross-Country Study. OECD Economic Studies, 26: 4398.

    • Search Google Scholar
    • Export Citation
  • Váradi, B. (2013): How can We Measure the Quality of Labour Market Related Decision-Making and Policy Design in Central- and Eastern European EU Member States and What Are Its Structural Determinants? GRINCOH Working Papers, WP4.5.2.

    • Search Google Scholar
    • Export Citation
  • Vis, B. (2012): Under which Conditions does Spending on Active Labor Market Policies Increase? An Fsqca Analysis of 53 Governments between 1985 and 2003. European Political Science Review, 3(2): 229252.

    • Search Google Scholar
    • Export Citation
  • Wooldridge, J. M. (2002): Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press.

  • Zetterberg, J. (1995): Unemployment, Labour Market Policy and the Wage Bargaining System. Fackföreningsrörelsens Institut för ekonomisk forskningFIEF Reprint Series, 99: 57115.

    • Search Google Scholar
    • Export Citation
  • Collapse
  • Expand

Senior editors

Editors-in-Chief: István P. Székely, Dóra Győrffy

Editor(s): Judit Kálmán

Associate Editors

  • Péter Benczúr, Joint Joint Research Center, European Commission
  • Dóra Benedek, International Monetary Fund
  • Balázs Égert, OECD
  • Dániel Prinz, World Bank
  • Rok Spruk, University of Ljubljana, School of Economics and Business, Slovenia

Editorial Board

  • Anders Åslund, Georgetown University and Advisory Council of CASE, USA
  • István Benczes, Corvinus University of Budapest, Hungary 
  • Agnieszka Chłoń-Domińczak, SGH Warsaw School of Economics, Poland
  • Fabrizio Coricelli, University of Siena, Italy
  • László Csaba, Corvinus University of Budapest, Hungary and Central European University, Austria
  • Beáta Farkas, Faculty of Economics and Business Administration, University of Szeged, Hungary
  • Péter Halmai, Budapest University of Technology and Economics, and National University of Public Service, Hungary
  • Martin Kahanec, Central European University, Austria
  • Michael Landesmann, The Vienna Institute for International Economic Studies (WIIW), Austria
  • Péter Mihályi, Corvinus University of Budapest, Hungary
  • Debora Revoltella, European Investment Bank

Corvinus University of Budapest
Department of Economics
Fővám tér 8 Budapest, H-1093, Hungary
E-mail: judit.kalman@uni-corvinus.hu

Indexing and Abstracting Services:

  • CABELLS Journalytics
  • EconLit
  • Elsevier GEO Abstracts
  • GEOBASE
  • Index Copernicus
  • International Bibliographies IBZ and IBR
  • JEL
  • Referativnyi Zhurnal
  • RePEc
  • SCOPUS
  • Social Science Citation Index

 

2023  
Web of Science  
Journal Impact Factor 0.7
Rank by Impact Factor Q3 (Economics)
Journal Citation Indicator 0.23
Scopus  
CiteScore 1.4
CiteScore rank Q3 (Economics and Econometrics)
SNIP 0.385
Scimago  
SJR index 0.218
SJR Q rank Q4

Acta Oeconomica
Publication Model Hybrid
Submission Fee none
Article Processing Charge 900 EUR/article
Printed Color Illustrations 40 EUR (or 10 000 HUF) + VAT / piece
Regional discounts on country of the funding agency World Bank Lower-middle-income economies: 50%
World Bank Low-income economies: 100%
Further Discounts Editorial Board / Advisory Board members: 50%
Corresponding authors, affiliated to an EISZ member institution subscribing to the journal package of Akadémiai Kiadó: 100%
Subscription fee 2025 Online subsscription: 700 EUR / 768 USD
Print + online subscription: 820 EUR / 900 USD
Subscription Information Online subscribers are entitled access to all back issues published by Akadémiai Kiadó for each title for the duration of the subscription, as well as Online First content for the subscribed content.
Purchase per Title Individual articles are sold on the displayed price.

Acta Oeconomica
Language English
Size B5
Year of
Foundation
1966
Volumes
per Year
1
Issues
per Year
4
Founder Magyar Tudományos Akadémia
Founder's
Address
H-1051 Budapest, Hungary, Széchenyi István tér 9.
Publisher Akadémiai Kiadó
Publisher's
Address
H-1117 Budapest, Hungary 1516 Budapest, PO Box 245.
Responsible
Publisher
Chief Executive Officer, Akadémiai Kiadó
ISSN 0001-6373 (Print)
ISSN 1588-2659 (Online)

Monthly Content Usage

Abstract Views Full Text Views PDF Downloads
Oct 2024 48 0 0
Nov 2024 47 0 0
Dec 2024 16 0 0
Jan 2025 43 0 0
Feb 2025 39 0 0
Mar 2025 46 1 1
Apr 2025 0 0 0