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1 Ekonomický časopis (Journal of Economics)

1 2021

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DO ACTIVE LABOUR MARKET POLICIES INCREASE THE SUBJECTIVE WELL-BEING OF THE UNEMPLOYED? EVIDENCE FROM OECD COUNTRIES

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Sahnoun M. , Abdennadher C.

nr 5

447 - 471

The employment policies, whether preventive or curative, arouse the interest of policy makers in the OECD countries. These policies are mainly concerned with the economy of labour market, but they are not detachable from the reference to the health economy in its social and psychological dimension. Using different estimates (OLS, FE, GMM system), we found evidence that Active Labour Market Policies (ALMPs) have the strongest impact on the subjective well-being of the unemployed. Examination of the different types of ALMP reveals heterogeneity; programs of incentive employment, start-up incentives and training have been most effective in improving the well-being of the unemployed compared to those of direct job creation and supported employment and rehabilitation. Then, we propose some policy recommendations by emphasizing the disposition of the subjective well-being approach in the design, implementation and evaluation of ALMPs.