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In this chapter we will:
- Survey the variety of labor market policies that have been tried in the OECD countries to improve the labor market outlook of the unemployed
- Consider how efficient active labor market policies, such as job search assistance, training, job subsidies, and temporary public employment, are in an equilibrium framework
- Understand how externalities can reduce the impact of targeted measures
- Learn the methodological principles that guide the evaluation of labor market policies, depending on the nature of available data (controlled experiment vs. observational data)
- Identify the impact of placement programs for youth, based on a randomised experiment led in the 2000s by Crépon, Duflo, Gurgand, Rathelot, and Zamora (2013) (Data and programs are available at www.labor-economics.org)
- Find out what assessments of labor market policies reveal
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