Abstract:Can activation programs be considered a ‘magic wand’ that triggers a change of incentives, with little or no costs, and produces real gains in terms of improved job-finding rates? The paper reviews the literature on the experience of OECD countries with such programs in five areas: strengthening job-search requirements, compulsory participation in active labor market programs, stricter monitoring, and imposing sanctions. Programs are judged in terms of duration of unemployment, probability of finding a job, an… Show more
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