• Journal of Labour Economics
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• v.40 no.1
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• pp.99-132
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• 2017

This study examines the employability of participants and employment outcomes in the Korean active labor market policies(ALMPs). The data used in empirical testing is Korea Labor and Income Panel Study 1~15th survey data, participants database in ALMPs and Unemployment Insurance database. The main results are as follows. Level of employability in participants with ALMPs is about 56.3 and that of participants with direct job creation(DJC) programs shows the most low level in sub-type of ALMPs. About 30.8% of all people participating in ALMPs belongs to vulnerable group and 71.5% of participants in DJC programs is in vulnerable group. In DJC programs, the participants with low level of employability are some more likely to be in vulnerable group. As the level of employability in participants with DJC programs increases, their job-search time after moved in labor market reduces and their duration of employment increases. To summarize, one can imply that the DJC programs are effective to transit vulnerable groups in labour market and improve the labor market outcomes by enhancing the employability of participants.