Labor Economics

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Chapter 14

Active Labor Market Policies

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
  • Find out what assessments of labor market policies reveal

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Graphics of the chapter

Reproducing the figures and the main results

Chapter 14 figures


Crépon, B., Duflo, E., Gurgand, M., Rathelot, R., & Zamora, P. (2013) "Do labor market policies have displacement effects? Evidence from a clustered randomized experiment" Quarterly Journal of Economics


Teaching slides

  • Presentation Title
  • author
  • Creation date
    • Active labor market policies
    • Pierre Cahuc, Stéphane Carcillo, André Zylberberg
    • 12/08/2014