Does the low wage sector serve as a stepping stone towards integration into better-paid jobs or at least towards integration of jobless people into employment? There is evidence for a 'low-wage trap' and for a high risk of low-wage earners to get unemployed, but this may also be due to sorting...

Digitization has spurred interest in the potential of statistical profiling to improve the targeting of active labor market policies. Despite growing adoption, empirical evidence on the effectiveness of such profiling in program allocation is scarce. We evaluate a semi-automated statistical...