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Aktiivisen työvoimapolitiikan mahdollisuudet työllisyysasteen kasvattamisessa

2020

This article considers the impact of active labor market policy on the employment rate. It reviews the literature on wage subsidies, training and job search assistance. Particular attention is paid on the side effects of active labor market policies such as the lock-in effect, substitution effect and displacement effect. Recent research concerning the implementation of active labor market policies is also reviewed. The evaluation studies show that private sector wage subsidies have positive employment effects both in the short and long runs. Public sector wage subsidies do not have positive employment effect on any time frame. Research suggests that wage subsidies may have substantial displ…