Towards a set of composite indicators on Flexicurity: The Composite indicator on Active Labour Market Policies

Abstract

Abstract

This paper presents a composite indicator to measure Effective Active Labour Market Policies (ALMP) using 16 indicators based on the Eurostat¿s Labour Market Policies DataBase. Alongside the composite index on Life Long Learning (LLL) previously elaborated, the present index has been developed within the joint DG EMPL/DG JRC project aimed to measure Flexicurity in the EU through a set of four composite indicators corresponding to the four main pillars of flexicurity as identified in the 2006 Commission Communication on this topic (COM(2007) 359). The ALMPs index is computed following the methodology developed in the OECD/JRC handbook on composite indicators. The paper is organized as follows. Section 2 lists the indicators and presents their characteristics and problems. Section 3 presents the methodology adopted for computation of a composite indicator. Section 4 shows the results. Section 5 carries out uncertainty analysis of their robustness. Finally, section 6 presents results on a country-by-country basis.