Direct job creation programs: Evaluation lessons on cost-effectiveness

In recent years there has been a renewed interest in direct job creation pr ograms as part of the active labour market policy, especially in the OECD E uropean countries. This study provides a review, with a special reference t o cost-effectiveness of Canadian direct job creation programs introduced by the Canadian federal government over the last two decades. The review brin gs diverse evaluation findings into a common focus and draws evaluation les sons about what works and what does not work with special reference to thei r cost-effectiveness over time. The paper finds that the cost-effectiveness of direct job creation programs improved considerably over time as program design was continuously modified. Also, the lessons drawn from the availab le evaluations highlight important structural and design issues.