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Active Labour Market Policy by a Profit‐Maximizing Firm
Author(s) -
Gerards Ruud,
Muysken Joan,
Welters Riccardo
Publication year - 2014
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/j.1467-8543.2012.00915.x
Subject(s) - private sector , labour economics , profit (economics) , order (exchange) , business , private enterprise , economics , finance , microeconomics , economic growth
This article investigates the effectiveness of an employment programme exclusively run by a private sector firm in order to find out whether such a programme can be beneficial to both the participating individuals and the private firm. To answer these questions, we use a unique dataset on a private employment programme covering 23 years of operations and data on 1,000 participating unemployed individuals. Using conservative estimates, we show that a private employment programme is more effective in reintegrating the unemployed than public efforts, while providing tangible benefits to the firm.