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Active labour market policies in Spain: A macroeconomic evaluation
Author(s) -
ARRANZ José María,
GARCÍA SERRANO Carlos,
HERNANZ Virginia
Publication year - 2013
Publication title -
international labour review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.433
H-Index - 46
eISSN - 1564-913X
pISSN - 0020-7780
DOI - 10.1111/j.1564-913x.2013.00182.x
Subject(s) - subsidy , unemployment , economics , labour economics , active labour market policies , panel data , macroeconomics , market economy , econometrics
. Using aggregate panel data on Spain's 17 regions for the period 1987–2010, the authors present a macroeconomic assessment of a variety of active labour market policies, including employment subsidies for permanent contracts, job‐creation schemes and vocational training programmes. Their results suggest that employment subsidies for permanent contracts had no notable effect on aggregate levels of permanent or temporary employment. However, they do appear to have had a small positive effect on transitions from unemployment to employment, and from temporary to permanent employment, particularly since the 1997 labour reform. Better targeted subsidies, the authors conclude, would have incurred fewer deadweight and substitution effects.