This paper first reviews trends since 1985 in public spending on labour market programmes, both active and passive. It then reviews the main findings from recent evaluations of labour market programmes. At first sight evaluation findings are not very encouraging, but there are some success...

Although rather discouraging in general, the evaluation literature indicates some measures that have been successful. Job-search assistance, wage subsidies in the private sector, and labour market training do work for some groups, even if the impacts are not large. Also, the evaluation...