PUBLIC SPENDING ON LABOR MARKET POLICIES AND UNEMPLOYMENT IN THE EUROPEAN UNION. A GENDER ANALYSIS
PUBLIC SPENDING ON LABOR MARKET POLICIES AND UNEMPLOYMENT IN THE EUROPEAN UNION. A GENDER ANALYSIS

Author(s): Adriana Nastas, Irina Bilan
Subject(s): Economy
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: unemployment rate; female unemployment rate; male unemployment rate; ALMPs; PLMPs; European Union countries;
Summary/Abstract: All around the world, governments are implementing policies designed to fight unemployment and diminish its negative economic and social effects. While passive labor market policies (PLMPs) are aimed at providing unemployed individuals with income support during their search for a job, active measures (ALMPs) aim to increase employment opportunities and cut down unemployment. Our paper seeks to investigate the impact of public expenditure with these policies on unemployment rates in the European Union countries, during 2006-2018. In addition, we want to assess whether there are substantial differences in their effects on unemployment rates among women and men. The results show that higher unemployment benefits are detrimental to employment because unemployed people lessen their efforts to search for a job, and active measures may be an efficient tool in reducing unemployment, although further analysis is needed in this respect. Moreover, we found evidence for important differences among the two genders, especially regarding the passive labor market measures. The side-effects of generous unemployment benefits on unemployment are found to be more important among men compared to women.

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