OECD Social, Employment and Migration Working Papers
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.
- ISSN: 1815199X (online)
- https://doi.org/10.1787/1815199X
Long time series for public expenditure on labour market programmes
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:
J65: Labor and Demographic Economics / Mobility, Unemployment, Vacancies, and Immigrant Workers / Unemployment Insurance; Severance Pay; Plant Closings;
H83: Public Economics / Miscellaneous Issues / Public Administration; Public Sector Accounting and Audits;
J08: Labor and Demographic Economics / General / Labor Economics Policies;
H53: Public Economics / National Government Expenditures and Related Policies / Government Expenditures and Welfare Programs;
I38: Health, Education, and Welfare / Welfare, Well-Being, and Poverty / Welfare, Well-Being, and Poverty: Government Policy; Provision and Effects of Welfare Programs
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