Discussion of What Works Among Active Labour Market Policies: Evidence from OECD Countries' Experiences

John Martin has written an excellent overview paper on the nature, role and consequences of active labour market policies. He considers the (strong) rationale for active versus passive labour market expenditure, describes the main results from an extensive evaluation literature, and offers practical suggestions concerning successful program design. I am confident that the paper will become a widely cited reference for this important policy area; it is a major contribution to the conference. The paper is accurate and balanced, which can be a dilemma for a discussant. This is resolved in what follows by offering some complementary observations and some suggestions for an alternative research approach. I do this with respect to the critical policy question: do labour market programs work?