OECD Social, Employment and Migration Working Papers

ISSN :: 1815-199X (online)
DOI :: 10.1787/1815199x

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This series is designed to make available to a wider readership selected labour market, social policy and migration studies prepared for use within the OECD. Authorship is usually collective, but principal writers are named. The papers are generally available only in their original language - English or French - with a summary in the other.

Long time series for public expenditure on labour market programmes

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Authors:

David Grubb¹, Agnès Puymoyen¹

Author Affiliations

1: OECD, France

Publication Date

21 Nov 2008

Bibliographic information

No.:: 73

Pages

117

DOI

10.1787/230128514343

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The OECD has collected data for public expenditure on labour market programmes (LMPs) continuously since the mid-1980s. For most longstanding Member countries, data according to a consistent classification system and definition of scope are available for reference years 1985 to 2002. Starting with reference year 1998, Eurostat started collecting and publishing data according to a somewhat different classification system and definition of scope. In line with agreements for bilateral coordination of data collection, the OECD after some time adopted - for non-Eurostat OECD Member countries as well as Eurostat countries – most of the features of the Eurostat system. This allows the OECD to use data collected by Eurostat rather than making a separate data request to the 20 Eurostat countries that are members of the OECD. OECD data according to the "new" classification and definition of scope are generally available for reference year 2002 onwards, or 1998 onwards for Eurostat countries. These data are often used in time-series applications, e.g. for documenting long-term trends in total social expenditure (ìn which labour market programmes are one component), or in time-series regressions that attempt to estimate the impact of training programmes vs. job-creation programmes on unemployment. It is no longer practicable to do such work using only the "old" data which stop in 2002 or the "new" data which start in 2002 or 1998. If the two data sets are combined using crude extrapolation and splicing techniques, time-series movements will result primarily from statistical breaks (i.e. changes in definition and coverage of the statistics) rather than real changes in spending patterns.

JEL Classification:

H53: Public Economics / National Government Expenditures and Related Policies / Government Expenditures and Welfare Programs
H83: Public Economics / Miscellaneous Issues / Public Administration; Public Sector Accounting and Audits
I38: Health, Education, and Welfare / Welfare and Poverty / Government Policy; Provision and Effects of Welfare Programs
J08: Labor and Demographic Economics / General / Labor Economics Policies
J65: Labor and Demographic Economics / Mobility, Unemployment, and Vacancies / Unemployment Insurance; Severance Pay; Plant Closings