Nothing Fails Like Success: The Evaluation-Research Industry and Labor Market Policy

Active labor market programs (ALMP) use direct government action to: 1. create a demand for labor, 2. increase the supply and quality of labor, and 3. encourage labor mobility. Relevant ALMP issues include: 1. the relative importance of training, 2. funding and administration, 3. worksharing, and 4. elimination of guest and/or aged workers. Evaluation research is often narrow and limited, and frequently produces misleading results. A recent careful and comprehensive evaluation of the Job Corps shows that evaluations could be accurate. However, they may still be unhelpful in garnering support for programs. Sweden and Germany prefer action over evaluation. Sweden's programs are especially interesting, since its unemployment rate has been less than 4% for 20 years. Although many differences limit the transferability of Swedish programs, the US can expand in this direction. Factors which encourage this view are that: 1. support for ALMP is not limited to the political left, 2. relevant administrative talent is already available, and 3. demographic trends are favorable.