The equity effects of labour market programs

Abstract

Labour market programs aim to enhance both total employment and equality of job opportunities. The existing literature implies that any assistance to a disadvantaged group will promote equity. This study attempts to present comparative information on the types of people who benefit and lose from the provision of labour market programs. It is found that, compared with an alternative of higher levels of health and education expenditure, expenditure on labour market programs, as they were constructed under Working Nation, favours people with more disadvantaged work histories and lower household incomes However, only 5, or at best 12, per cent of people achieve continuing employment as a result of program participation. Most of the benefits, therefore, are received during the program period.