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The article assembles efficiency and equity arguments for and against targeting the long‐term unemployed in active labour market policies (ALMP), and refers to evidence from applications to date. The theory and practices of ALMP differ somewhat between low and high unemployment countries. The approach taken in Sweden in the 1960s to 1980s is used to discuss low unemployment countries, and OECD analysis in the 1990s to represent theory for the high unemployment countries. Targeting the long‐term unemployed is specifically a policy for high unemployment countries, and depends particularly on effects on wage pressure. The article concludes by urging that equity arguments be considered as well as efficiency and by drawing attention to the form which targeting takes. Comments are made about Britain’s New Deal in relation to the form of targeting.

This chapter analyses the recovery of the Danish economy from the crisis of the 1980s, its elevation to a bit of an ‘economic miracle’ or at least an ‘employment miracle’ from 1995 to 2005 and its subsequent decline during the financial crisis, which revealed more long-standing problems that precluded a quick recovery. The solution of Denmark's structural balance of payment problems in the early 1990s paved the way for long-term prosperity, and Denmark managed the challenges of globalisation and deindustrialisation almost without social costs. However, an accumulation of short-term policy failures and credit liberalisation facilitated a credit and housing bubble, a consumption-driven boom and declining competitiveness. In broad terms, the explanation is political; this includes not only vote- and office-seeking strategies of the incumbent government but also ideational factors such as agenda setting of economic policy. Somewhat unnoticed – partly because of preoccupation with long-term challenges of ageing and shortage of labour – productivity and economic growth rates had slowed down over several years. The Danish decline in GDP 2008–2009 was larger than in the 1930s, and after the bubble burst, there were few drivers of economic growth. Households consolidated and were reluctant to consume; public consumption had to be cut as well; exports increased rather slowly; and in this climate, there was little room for private investments. Financially, the Danish economy remained healthy, though. Current accounts revealed record-high surpluses after the financial crisis; state debt remained moderate, and if one were to include the enormous retained taxes in private pension funds, net state debt would de facto be positive. Still, around 2010–2011 there were few short-term drivers of economic growth, and rather unexpectedly, it turned out that unemployment problems were likely to prevail for several years.

Social spending is at the forefront of the tools used to repair the damage caused by the global epidemic. However, one of the most critical questions in recent days is as follows: what are the effects of social expenditures in eliminating unemployment? The primary purpose of this article is to provide empirical evidence on the impact of social spending on chronic unemployment in the selected organization for economic co-operation and development (OECD) countries.

In this study, the data of 30 selected OECD countries between 1991 and 2018 have been compiled. First, countries have been divided into four categories according to their spending intensity to determine the effects of social spending on the long-term unemployment rate. Then, the auto-regressive distributed lag (ARDL) approach and the error correction models (ECM) examine the variables' short- and long-term interactions.

The author found that the change in the share of social expenditures in GDP affects chronic unemployment similarly. This finding is consistent with the results of studies in the literature dealing with the relationship between public sector size and unemployment. However, the research findings are specifically about the effects of social expenditures on chronic unemployment. In this respect, the results reflect that expenditures with passive characteristics have an expansionary effect on long-term unemployment. In addition, the progressive effect of social expenditures on chronic unemployment is increasing in countries with high expenditure intensity. In countries with relatively low spending intensity, the impact of social spending is limited to the short run and is lower.

Multiple studies have reported that public policies developed in line with the incentives of active employment and public or private sector investments reduce the unemployment rate by positively affecting the output/employment level. This study, unlike other studies, focuses on the effects of social expenditures on chronic unemployment. It also compares the effects of social spending on the long-term unemployment rate for countries with varying spending intensities. Therefore, this article tests the impact of social expenditures used against a concrete socioeconomic problem in the OECD sample. In this respect, the findings contribute to the literature by addressing the relationship between social spending and chronic unemployment.

This paper empirically explores the role of skill losses during unemployment behind firms' behaviour in interviewing long-term unemployed

The analysis makes use of the Work Employment Relations Survey in the UK, while it applies a panel probit modelling approach to estimate the empirical findings.

The findings document that skill losses during long-term unemployment reduce the likelihood of an interview, while they emphasize the need for certain policies that could compensate for this deterioration of skills. For robustness check, the estimation strategy survives the examination of the same predictors under different types of the working environment.

The original values of the work 1 combines for the first time both duration and technology as predictors of interview probability. Until now, the independent variables were used to test whether an individual has managed to exit unemployment, thus skipping the step of the interview process.

Describes Denmark′s new strategies, designed to cope with and overcome long‐term unemployment. Since the long‐term unemployed (LTU) lack formal education and training, a retraining and temporary job creation scheme has been in operation for the last two years. Reports on research and development in education and training of adult LTUs. Concludes that wider vocational and educational courses, catering for the specific needs of the target group, must be established.

The purpose of this paper is to test a process model of coping with job loss by examining the impact of distal to proximal variable sets for incrementally explaining two distinct subjective well‐being variables: life satisfaction and unemployment stigma. A second purpose is to test for mean differences between study scales for increasingly long‐term unemployed individuals.

A unique sample of unemployed victims completed an online survey investigating the impact of six variable sets on life satisfaction and unemployment stigma. These sets fall within the McKee‐Ryan et al. taxonomy and included: human capital and demographics; personal and financial coping resources; cognitive appraisal; escape‐focused coping; problem‐focused coping; and job search effort.

Results partially supported the hypothesized variable set impact order on both life satisfaction and unemployment stigma. In addition some significant differences on study variables were found comparing four unemployed groups: up to six months; and three progressively long‐term unemployed groups, i.e. seven to 12 months; 13 to 24 months; and over 24 months, with the over 24 month unemployed respondents (23 per cent of the sample) suffering the most.

The cross‐sectional self‐report study research design is the foremost limitation. However, given the challenges of collecting unemployment related‐data on such a diverse sample, the unemployment agency/job services recent‐job‐loss‐respondent longitudinal data collection approach used in previous research was not an option. The one‐factor test found that only 15 per cent of “common method variance” was explained by the first factor, suggesting that this is not an overriding limitation. Survey constraints necessitated using shortened validated scales in several instances. However, the authors did select the highest loading items when shortening scales and such scales were generally reliable.

Implications of study results for careers and steps to prevent longer‐term unemployment are discussed. There seemed to be a general “disconnect” between unemployed respondent self‐ratings of positive skill assessment, networking comfort, and proactive search, all of which were fairly high, against recent behavioral job search which was lower. This disconnect suggests that it may be hard for many unemployed to objectively look at their job search process.

A unique unemployed sample, primarily executives, middle managers and professional, salaried individuals, with most being longer‐term unemployed, was utilized. Initial psychometric support for several new scales was found, including unemployment stigma and behavioral job search. This study represented a fairly comprehensive test of the McKee‐Ryan et al. taxonomy for correlates of psychological well‐being during unemployment specifically applied to life satisfaction and unemployment stigma. An innovative on‐line data collection approach, snowball sampling, was used.

The purpose of this paper is to explore whether single and married female job candidates’ un/employment histories differentially affect their chances of obtaining interviews through China’s internet job boards, and to consider whether firms’ discrimination against, and/or preference for, candidates who are un/employed vary with the duration of unemployment spells.

Resumes of fictitious applicants are carefully crafted in terms of realistic work histories and educational backgrounds. Candidates’ experiences of unemployment and the revelation of their marital status are controlled. Over 7,000 applications are submitted to real job postings. Callbacks are carefully tracked and recorded. Linear probability models are employed to assess the roles of particular characteristics.

The marital status of female candidates affects how recruiters screen their applications. While current spells of unemployment, whether short or long term, significantly reduce married women’s chances of obtaining job interviews in the Chinese context, they strongly increase the likelihood that single women will be invited for interviews. Chinese firms appear to “forgive” long-term gaps in women’s employment histories as long as those gaps are followed by subsequent employment.

This paper is the first to explore how marital status affects the ways that firms, when hiring, interpret spells of unemployment in candidates’ work histories. It is also the first to explore the effects of both marital status and unemployment spells in hiring in the context of China’s dynamic internet job board labor market.

Data from the 1984 Survey of Income and Program Participation are linked to longitudinal records from the Social Security Administration to examine the relationship between the long-term unemployment that prime-aged (ages 25–55) male workers experienced around the time of the 1980–1982 twin recessions with earnings, receipt of either Disability Insurance or Supplemental Security Income (DI-SSI) benefits, and mortality. Separate estimations are made for those who voluntarily and involuntarily left employment and the combined sample of these two groups. We find that 20 years later, long-term joblessness was associated with significantly lower earnings and higher likelihoods of the receipt of DI-SSI benefits as well as mortality.

This “Rapport” proposes to examine the function and effect of British social law in the context of the employment/unemployment debate. This debate is a most significant one for it has not only British, but also European and International dimensions.

Over the last decade, training has gained in popularity as European unemployment remains stubbornly high. Critical voices accuse the British education and training system of not being sufficiently prepared to measure up against other European training systems, notably that of Germany. Training provision in Germany is widely assumed to be superior to that in this country, and is frequently held up as the model for an improved system of training for Britain. Offers an alternative view of the German system, concentrating on its rarely mentioned disadvantages with respect to both the provision of initial training and further education and training for the unemployed, especially the long‐term unemployed. Though attractive and appealing in many ways, argues that the German model has been over‐praised by British commentators. If there is a “training crisis” in Britain, the German approach is not the solution.