Benefits and active labour market policies

The report presents the results of an extensive study into the relationship between benefits and active labour market policies. It analyses, the ways in which benefit schemes interact with active labour market policies; the extent to which they interact with each other; and assesses the problems that EU Member States have to tackle when carrying out their activation and making work policies in line with the relevant Employment Guidelines.

The study looks at both quantitative and qualitative developments covering the EU-15 Member States. It contains valuable information about recent benefit reforms and strategies implemented by the Member States. All benefit systems and active labour market policies are analysed at the general level, whilst a more in-depth analysis is carried out for two labour market transitions: (a) moving from unemployment/ inactivity to work and (b) moving from work to retirement, where emphasis is placed on active ageing. Simulations carried out for six member states on selected policy measures look at their impact on unemployment and on employment rates and implications of the main results are examined in relation to the European Employment Strategy.