Labour market policy interventions in socioeconomically disadvantaged areas

Residential segregation and the concentration of socioeconomic disadvantage are closely linked to unequal labour market opportunities. People who are long-term unemployed, newly arrived immigrants and people with low levels of education are overrepresented in these areas. There is extensive research on labour market policy interventions for specific groups, while knowledge about interventions that are targeted or organised geographically is limited. This literature review synthesizes existing research and examines how it can inform intervention content, implementation, and the selection of target groups. These questions are central to how labour market policy can contribute to improved labour market outcomes for residents of these areas.

The aim of the literature review is to synthesise and analyse research on labour market policy interventions relevant to people living in socioeconomically disadvantaged areas. The review examines both which specific interventions can improve labour market outcomes for relevant groups of individuals and what is known about the effects and implementation of area-based interventions. A particular focus is on clarifying what the research can tell us about geographical organisation and geographical prioritisation and identifying the questions that the existing evidence cannot answer.

The literature review is based on a literature search conducted from June to August 2026. Searches were conducted in several academic databases. These were supplemented by searches of relevant government agencies’ websites and examinations of the reference lists of identified studies. The analysis distinguishes between indirect evidence on interventions for relevant groups of individuals, direct evidence on area-based interventions and research on the implementation of the initiatives.

The literature review will be launched in autumn 2026.

The author of the publication is Anders Forslund, professor emeritus at The Institute for Evaluation of Labour Market and Education Policy (IFAU).

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