Improving the impact of public policies and budgets on employment outcomes
Guide for the review of employment-related public expenditures and application to six pilot countries
This report presents the first assessment of employment-related public expenditures (ERPEs) in six pilot countries, as an input to support the gradual transition towards pro-employment budgets. The goal is to understand the consistency of public expenditures with national employment policies and issues related to their incidence, effectiveness, and allocative efficiency.
This report presents the first assessment of employment-related public expenditures (ERPEs) in six pilot countries, as an input to support the gradual transition towards pro-employment budgets. The goal is to understand the consistency of public expenditures with national employment policies and issues related to their incidence, effectiveness, and allocative efficiency.
The core of the report is organized in five sections. Section 2 presents the conceptual framework and methodology used to conduct the review of employment-related public expenditures and an analysis of the relevant elements of the budget process. This section also discusses some of the challenges encountered during implementation of the quantitative and qualitative assessments. A detailed description of data needs and different toolkits is presented in annexes 1 and 2.
Section 3 reviews stylized facts about labour markets and employment challenges in the six pilot countries and summarizes the types of intervention that governments are pursuing to address these. The purpose of this section is to set out the context against which ERPEs are evaluated. Indeed, there are two interrelated questions that need to be addressed: whether the budget is used properly to support the policies that governments set in place to respond to different employment challenges; and whether the policies themselves, and implicit allocations, are relevant, given what is known about their impact on labour market outcomes.
Sections 4 and 5 present results of the analysis of employment-related expenditures for the pre-COVID-19 period 2012–2020 and a review of the budget process, respectively.
The core of the report is organized in five sections. Section 2 presents the conceptual framework and methodology used to conduct the review of employment-related public expenditures and an analysis of the relevant elements of the budget process. This section also discusses some of the challenges encountered during implementation of the quantitative and qualitative assessments. A detailed description of data needs and different toolkits is presented in annexes 1 and 2.
Section 3 reviews stylized facts about labour markets and employment challenges in the six pilot countries and summarizes the types of intervention that governments are pursuing to address these. The purpose of this section is to set out the context against which ERPEs are evaluated. Indeed, there are two interrelated questions that need to be addressed: whether the budget is used properly to support the policies that governments set in place to respond to different employment challenges; and whether the policies themselves, and implicit allocations, are relevant, given what is known about their impact on labour market outcomes.
Sections 4 and 5 present results of the analysis of employment-related expenditures for the pre-COVID-19 period 2012–2020 and a review of the budget process, respectively.