Labor market policies

Essay by AlexsintraUniversity, Bachelor'sA, April 2004

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After the 1960's active labor market policies appeared as an important employment policy, specially in industrial countries. This policy includes a big range of measures made to increase the quality of the labor supply through activities such as retraining, raise the demand for labor with direct job creation and related programs, and improve job matching for both workers and employers that want expand job search assistance. The objective of these measures is primarily economic. They are intended to increase the probability that the unemployed will find jobs and that the underemployed will increase their productivity and earnings.

Labor market policies across the world have developed what its call the Japanese, the European and the American models. These models simply reflect different types of approaches to labor market policies. The purpose of this is simply to highlight different approaches to Labor Market Policies developed by industrialized countries at the end of the 20th century.

The Japanese model, until the early 90s, believed on the principle of full-employment intended mainly as a value to be preserved in a good society.

The European model accepts market laws and the existence of unemployment as a necessary temporary condition to help and maximize the allocation of labor.

And The American model focuses on the demand side of the labor market by limiting government intervention to a great extent.

The International Labor Organization, the World Bank and the Asian Development Bank are some of the most important multilateral companies and multilateral companies are companies involving more than two nations or parties; and these have placed labor market policies at the central part of their social protection strategies. Most bilateral and multilateral agencies operate in Asia. Many have labor related projects particularly in the field of child protection, which is an area currently attracting considerable funding.