Evaluation of Labour Market Policy - Methodological Issues

Abstract: Active labour market policy has gained emphasis in several OECD countries to promote efficient labour markets, and to combat rising unemployment. Consequently the question has gained interest, how to make these policies more effective. During the last ten years several attempts have been made to review the advances in the field of labour market policy evaluation. The paper gives an overview of the field, considering what steps could be taken, and what priorities could be assigned in the development of a rather comprehensive national evaluation practice. It is argued that each of the different categories of labour market policy evaluation -- policy analysis, impact analysis, and implementation analysis -- should be taken seriously. Priority should be given especially to the development of implementation analysis: setting up sound monitoring systems and performance indicators must be considered as very important steps. Implementation evaluation has a close relationship to impact evaluation because appropriate structures of monitoring and performance indicators are a necessary precondition for impact studies.;