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OECD Local Economic and Employment Development (LEED) Papers

The OECD Local Economic and Employment Development (LEED) Programme Papers present innovative ideas and practical examples on how to boost local development and job creation. A wide range of topics are addressed, such as employment and skills; entrepreneurship; the social economy and social innovation; culture; and local capacity building, among others. The series highlights in particular policies to support disadvantaged places and people, such as the low skilled, the unemployed, migrants, youth and seniors.

English, French

“Who does what” for active labour market policies

A zoom on the role of subnational governments

This paper maps “who does what” across levels of government in OECD countries in relation to active labour market policies (ALMPs), with a focus on the role of subnational governments. It highlights recent reforms in the multi-level governance of ALMPs in a number of countries, and shows that in about two out of five OECD countries, subnational governments have some type of formal competences for delivering ALMPs. It also shows other ways subnational governments are commonly involved in such policies. This includes delivering their own labour market programmes, often targeted to those farthest from the labour market or facing multiple barriers to employment. Finally, it considers some of the benefits and drawbacks of more decentralised approaches to ALMPs and offers some general principles for managing these trade-offs across different types of governance systems.

English

Keywords: multi-level governance, employment, active labour market policies
JEL: H70: Public Economics / State and Local Government; Intergovernmental Relations / State and Local Government; Intergovernmental Relations: General; J08: Labor and Demographic Economics / General / Labor Economics Policies; J68: Labor and Demographic Economics / Mobility, Unemployment, Vacancies, and Immigrant Workers / Mobility, Unemployment, and Vacancies: Public Policy
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