2019年-PIIE彼得森国际经济研究所_active-labor-market-policies-lessons-other-countries-united-states_12页_392kb

19-2 Active Labor Market Policies: Lessons from Other Countries for the United States

Core Content

This paper analyzes the effectiveness of active labor market policies (ALMPs) in helping jobless workers find employment and remain connected to the labor force. It compares the United States' approach to those of other OECD countries and highlights the need for more targeted and comprehensive labor market interventions in the U.S.

Main Viewpoints

• U.S. Labor Market Challenges: The U.S. has experienced a significant decline in labor force participation, especially among prime-aged workers, which has been exacerbated by the financial crisis of 2007-09. This has led to a large number of workers exiting the labor market and not being counted as unemployed.

• Passive vs. Active Policies: The U.S. primarily relies on passive labor market policies such as unemployment insurance and disability insurance, which provide financial relief but do not address the root causes of job displacement. In contrast, other OECD countries invest more in active labor market policies that aim to match workers with jobs, provide training, and offer employment incentives.

• Effectiveness of ALMPs: Research shows that active labor market policies such as job placement services, training, wage subsidies, and employer subsidies have been more effective than direct job creation programs like public works. These policies help workers find jobs faster and improve long-term employment outcomes.

• Limited U.S. Investment: The U.S. spends significantly less on ALMPs compared to most other OECD countries, particularly in areas like training and wage subsidies. The share of spending on ALMPs has declined over time, with a 50% drop since 1985.

• Role of Self-Employment and the Sharing Economy: While self-employment and the sharing economy offer some potential for job creation, they are not a comprehensive solution. These programs tend to benefit those with existing assets and skills, and they have not been effective in addressing the long-term unemployment of the most disadvantaged.

• Importance of Education: The U.S. lags behind other countries in education and skills development, particularly in math and science. This may hinder future workers from benefiting from retraining and active labor market policies as the economy evolves.

Key Information

• Job Placement Services: These services improve job finding rates and reduce unemployment duration. However, they do not create jobs and may have displacement effects. They are most effective when combined with other ALMPs like training and wage subsidies.

• Training Programs: Training can be effective in the long run, but its short-term impact is limited due to temporary wage reductions. Training is more effective for women than men, which may be relevant to the current U.S. labor market context where low-skilled male jobs are disappearing faster.

• Employment Incentives: Wage subsidies and wage insurance are costly but can be effective in encouraging employment. They may be more beneficial when paired with job placement services. Wage insurance, in particular, has shown success in programs like Canada’s, which increased full-time employment and income.

• Direct Job Creation: Public works programs have generally been ineffective, as they may signal to employers that workers are difficult to place and are costly to administer. Most OECD countries have reduced their reliance on such programs.

• Self-Employment: Self-employment programs are rarely used in the U.S. and have shown limited effectiveness. The sharing economy, while providing flexible and supplementary income, has not been a major solution for long-term unemployment.

• Education and Skills: The U.S. needs to improve education and training, especially in STEM fields, to ensure future workers can benefit from active labor market policies and adapt to evolving job markets.

Summary Table

Conclusion

The paper concludes that the U.S. should adopt a more active approach to labor market policies, focusing on job placement services, training, and wage subsidies, rather than relying on passive programs or direct job creation. A targeted increase in investment in these areas could help improve labor force participation, reduce long-term unemployment, and enhance economic growth.