Ruud Gerards and Joan Muysken are at Maastricht University. Riccardo Welters is at James Cook University.
Active Labour Market Policy by a Profit-Maximizing Firm
Article first published online: 8 OCT 2012
© John Wiley & Sons Ltd/London School of Economics 2012
British Journal of Industrial Relations
Volume 52, Issue 1, pages 136–157, March 2014
How to Cite
Gerards, R., Muysken, J. and Welters, R. (2014), Active Labour Market Policy by a Profit-Maximizing Firm. British Journal of Industrial Relations, 52: 136–157. doi: 10.1111/j.1467-8543.2012.00915.x
- Issue published online: 10 FEB 2014
- Article first published online: 8 OCT 2012
- Manuscript Accepted: 15 JUL 2012
This article investigates the effectiveness of an employment programme exclusively run by a private sector firm in order to find out whether such a programme can be beneficial to both the participating individuals and the private firm. To answer these questions, we use a unique dataset on a private employment programme covering 23 years of operations and data on 1,000 participating unemployed individuals. Using conservative estimates, we show that a private employment programme is more effective in reintegrating the unemployed than public efforts, while providing tangible benefits to the firm.