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Combining work and training increases the success rates of programs

Active labor market programs, such as training, employment services, wage subsidies, and public works, have a mixed record. When they are not well grounded in the needs and realities of the labor market or when administration is poor and not transparent, they are of little use or even worse. When they are well designed and implemented, they can help facilitate job matching, mitigate the negative impacts of economic downturns, and fill the gap when employers or workers underinvest in training. Even when this is the case, though, effects tend to be modest, so expectations about what active labor market policies can achieve need to be held in check.

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