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Direct Job Creation: Economic Evaluation And Lessons For The United States And Western Europe

This paper reviews and assesses public employment and training efforts, ranging from direct job creation to education and training programs, in Western Europe and the United States. We first address theoretical issues: economic explanations for unemployment and justification for government intervention in the labor market; the interaction of employment policy and exchange rate policies. We then evaluate job creation programs and survey program effectiveness across a variety of other employment policies, including wage subsidies and training and placement programs for adults and for youth. In the final section we offer nine general conclusions that result from the survey. DIRECT JOB CREATION: ECONOMIC EVALUATION AND LESSONS FOR THE UNITED STATES AND WESTERN EUROPE