The DOI matches its Crossref record; 29 of the 29 references it cites were found in a registry or an index.
How Effective Are Active Labor Market Policies in Developing Countries? A Critical Review of Recent Evidence
Abstract
Jobs are the primary policy concern of policymakers in many countries. The 2007–2008 global financial crisis, rising demographic pressures, high unemployment rates, and concerns over automation all make it seem imperative that policymakers employ increasingly more active labor market policies. This paper critically examines recent evaluations of labor market policies that have provided vocational training, wage subsidies, job search assistance, and assistance moving to argue that many active labor market policies are much less effective than policymakers typically assume. Many of these evaluations find no significant impacts on either employment or earnings. One reason is that urban labor markets appear to work reasonably well in many cases, with fewer market failures than is often thought. As a result, there is less of a role for many traditional active labor market policies than is common practice. The review discusses examples of job-creation policies that do seem to offer promise, and concludes with lessons for impact evaluation and policy is this area
Overview
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
Claims other papers make about this one
Each is checked against this paper’s own text: does it say what the citing paper says it does?
In the citing paper
“Our intervention also builds on existing work examining the impacts of standalone vocational skills training programs, for which meta-analyses have pointed to low or short-lived returns in low-income settings”
From Women's Empowerment in Action: Evidence from a Randomized Control Trial in Africa (2020) · cites this paper as McKenzie 2017
Citations
Cites
Does matching overcome lalonde’s critique of nonexperimental estimators?
A. Smith, J., & E. Todd, P. (2005) · Journal of Econometrics · doi:10.1016/j.jeconom.2004.04.011 · Cited by 3,176
Maloney, W. F. (2004) · World Development · doi:10.1016/j.worlddev.2004.01.008 · Cited by 1,506
Underinvestment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh
Bryan, G., Chowdhury, S., & Mobarak, A. M. (2014) · Econometrica · doi:10.3982/ecta10489 · Cited by 714
Jensen, R. (2012) · The Quarterly Journal of Economics · doi:10.1093/qje/qjs002 · Cited by 708
Bank, W. (2012) · doi:10.1596/978-0-8213-9575-2 · Cited by 668
McKenzie, D., & Woodruff, C. (2014) · The World Bank Research Observer · doi:10.1093/wbro/lkt007 · Cited by 659
Self-citationCrépon, B., Duflo, E., Gurgand, M., Rathelot, R., & Zamora, P. (2013) · The Quarterly Journal of Economics · doi:10.1093/qje/qjt001 · Cited by 558
World development report 2013 : jobs
Beegle, K., Hentschel, J. S., & Rama, M. (2012) · Cited by 371
McKenzie, D. (2017) · American Economic Review · doi:10.1257/aer.20151404 · Cited by 333
Self-citationAttanasio, O., Kugler, A., & Meghir, C. (2011) · American Economic Journal: Applied Economics · doi:10.1257/app.3.3.188 · Cited by 332
Research works printed but not linked: 8
- 2010, . Handbook of Development Economics Volume 5.
- 2004, “Assisting the Transition from Workfare to Work: A Randomized Experiment.” Industrial and Labor Relations, Review, 57, 128
- 2016, “Middle East and North Africa Jobs Crisis ‘May Import Terror into Europe.’”, Daily Mail
- 2014, “Business Looks to Modi to Defuse India’s Jobs Time Bomb.”, Reuters
- 2013, Let Workers Move: Bilateral Labor Agreements to Increase Trade in Services
- 2010, “Jobs and the Crisis: What Has Been Done, and Where to Go from Here?”, Viewpoint
- 2015, “Africa Has the World’s Fastest-Growing Labor Force but Needs Jobs Growth to Catch Up”, Quartz Africa
- 2016, “Robots Could Eat All of Ethiopia’s Jobs; South Africa, Nigeria, and Angola Not Safe Either.”, Mail and Guardian Africa
Cited by
Sorted by citations
Women's Empowerment in Action: Evidence from a Randomized Control Trial in Africa
Bandiera, O., Buehren, N., Burgess, R., Goldstein, M., Gulesci, S., Rasul, I., & Sulaiman, M. (2020) · American Economic Journal: Applied Economics · doi:10.1257/app.20170416 · Cited by 311
Tackling Youth Unemployment: Evidence From a Labor Market Experiment in Uganda
Alfonsi, L., Bandiera, O., Bassi, V., Burgess, R., Imran Rasul, A., Sulaiman, M., & Vitali, A. (2020) · Econometrica · doi:10.3982/ecta15959 · Cited by 196
THE EFFECTIVENESS OF ACTIVE LABOR MARKET POLICIES: A META‐ANALYSIS
Vooren, M., Haelermans, C., Groot, W. N. J., & van den Brink, H. M. (2018) · Journal of Economic Surveys · doi:10.1111/joes.12269 · Cited by 173
The Microfinance Business Model: Enduring Subsidy and Modest Profit
Cull, R., Demirgüç‐Kunt, A., & Morduch, J. (2017) · The World Bank Economic Review · doi:10.1093/wber/lhx030 · Cited by 171
The Impact of Trade on Inequality in Developing Countries
Pavcnik, N. (2017) · doi:10.3386/w23878 · Cited by 169
Metadata
- Authors
- McKenzie, D.
- Corresponding author
- McKenzie, David
- ORCID
- McKenzie, David
- Venue
- The World Bank Research Observer
- Publisher
- Oxford University Press (OUP)
- Published
- 2017-08
- Volume
- 32
- Issue
- 2
- Pages
- 127-154
- ISSN
- 0257-3032 (ISSN-L)
- 1564-6971
- OpenAlex
- W2604058646
- Cited by
- 283
- References
- 29
- Citations by year
- 2026: 21 · 2025: 33 · 2024: 46 · 2023: 37 · 2022: 43 · 2021: 37 · 2020: 19 · 2019: 25 · 2018: 17 · 2017: 3
- FWCI
- 31.50
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The World Bank Research Observer (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Education and Labor Relations
- Social Sciences › Business, Management and Accounting › Industrial relations › Employment, Labor, and Gender Studies
- Keywords
- active labour market policy, developing countries, vocational education, wage subsidies, job search assistance, job creation policy, employment effects, earnings outcomes, impact evaluation, urban labor markets, market failure, unemployment
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review