TY - JOUR
T1 - The rise (and fall) of labour market programmes
T2 - Domestic vs. global factors
AU - Gaston, Noel
AU - Rajaguru, Gulasekaran
PY - 2008
Y1 - 2008
N2 - We provide a simple model to illustrate that tax and redistributive considerations as well as increasing globalization may lead workers unexposed to the threat of unemployment to prefer government spending on active labour market programmes to passive spending, e.g., on unemployment benefits. In the empirical work, panel data for OECD countries are used to examine the relationship between active and passive labour market spending and various controls relevant for analysing the political economy of labour market policies. Overall, we find that domestic concerns, such as government indebtedness, are far more important determinants of labour market expenditures than global influences.
AB - We provide a simple model to illustrate that tax and redistributive considerations as well as increasing globalization may lead workers unexposed to the threat of unemployment to prefer government spending on active labour market programmes to passive spending, e.g., on unemployment benefits. In the empirical work, panel data for OECD countries are used to examine the relationship between active and passive labour market spending and various controls relevant for analysing the political economy of labour market policies. Overall, we find that domestic concerns, such as government indebtedness, are far more important determinants of labour market expenditures than global influences.
UR - http://www.scopus.com/inward/record.url?scp=54749113169&partnerID=8YFLogxK
U2 - 10.1093/oep/gpn002
DO - 10.1093/oep/gpn002
M3 - Article
AN - SCOPUS:54749113169
SN - 0030-7653
VL - 60
SP - 619
EP - 648
JO - Oxford Economic Papers
JF - Oxford Economic Papers
IS - 4
ER -