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Evaluation of IMF Programmes on Employment in the EU

Author

Listed:
  • Gurgen Ohanyan

    (Bucharest University of Economic Studies, Bucharest)

  • Armenia Androniceanu

    (Bucharest University of Economic Studies, Bucharest)

Abstract

The International Monetary Fund (IMF) has undergone notable changes by starting collaboration with the European Union (EU). Hence, this paper seeks to estimate the effects of IMF programmes on employment, with data from the EU-28 between 1993 and 2013. In order to control for selection on observable and unobservable variables, the study employs Propensity Score Matching in combination with the Differences-in-Difference estimator. Next, the robustness of the findings is checked by applying four different matching algorithms. Our paper concludes that employment decreases once a country resorts to the IMF, and this impact is still measurable after two years of programme initiation.

Suggested Citation

  • Gurgen Ohanyan & Armenia Androniceanu, 2017. "Evaluation of IMF Programmes on Employment in the EU," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 67(3), pages 311-332, September.
    • Handle: RePEc:aka:aoecon:v:67:y:2017:i:3:p:311-332
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    References listed on IDEAS

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    More about this item

    Keywords

    European Union; IMF programmes; propensity score matching; conditional lending; employment;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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