Labour Market Programmes, Service Individualisation and Employment Outcomes

ABSTRACT This paper investigates the role of organisational factors in providing individualised services for welfare recipients with multiple needs. Specifically, the study explores the impact of organisational capacities within Active Labour Market Programmes (ALMPs) on employment participation among individuals unable to work due to long‐term illness or injury. The study utilises a conceptual framework that identifies organisational capacities such as resources and budgets, caseworker flexibility, professional knowledge and opportunities for user participation. These factors are believed to enhance individualisation and service quality for those deemed ‘hard to serve’. The study combines data from caseworker surveys in three Norwegian counties and administrative data from several registries, encompassing all recipients of Work Assessment Allowance (WAA) from 2015 to 2018. Multilevel models are used to assess the importance of organisational factors, taking into account individual‐beneficiary level characteristics. The emphasis is on the likelihood of recipients entering ordinary employment. The results indicate that only caseworker knowledge and experience with suitable ALMPs significantly impact the likelihood of ALMP participants transitioning to work. Moreover, recipients with more socio‐economic resources and better health are more likely to enter ordinary employment after considering organisational factors. In conclusion, of the four organisational factors derived from theory, only caseworker knowledge of ALMP schemes positively correlates with labour force participation among ALMP participants with reduced work capacity.