This paper focuses on the displacement effects of employment programmes. A simple definition of displacement is any changes in employment elsewhere in the economy as a consequence of the programmes in addition to the direct jobcreation effect on those who pass through active labour market programmes. Normally considered to reduce employment elsewhere, it can be shown that such effects, in theory at least, may increase regular employment, depending on the ways the economy is assumed to respond.
Often discussion of displacement has focused on the impact of marginal job subsidies, rather than the impact of other forms of active labour market policy. One question this research seeks to answer is whether and how other forms of active labour market policy might result in job displacement.