How Active Should Our Active Labor Market Policies Be in a Globalizing World?

February 9, 2017

Jobs are the number one policy concern in many countries. More than 100 million Africans will enter the labor force over the next decade, and youth unemployment rates are 30 percent or higher in some countries of the Middle East and North Africa. Technological changes and globalization have drawn renewed attention to the issues of skill matching and mobility across occupations and locations. In this month’s Policy Research Talk David McKenzie drew on a wide range of evaluations of active labor market policies to argue that such policies are much less effective than typically assumed. He discussed examples of job creation policies that do offer promise.