Active labour market policy use in Luxembourg: evidence from a firm survey

Abstract

We analyse the use of active labour market policy (ALMP) measures by Luxembourg firms during the years of economic and financial crisis (2008–2009) and the subsequent European sovereign debt crisis (2010–2013). About 34% of Luxembourg firms used ALMPs between 2008 and 2013. Economy-wide, the use of ALMPs increased along both the extensive margin (more firms) and the intensive margin (more measures per firm). The likelihood that a firm hired with ALMPs is greater for firms that are large, multi-establishment, domestically oriented and firms facing strong demand and competition, with concerns about labour cost pressures.