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A net impact analysis of active labour programmes in Hungary

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  • Christopher J. O'Leary

Abstract

This paper presents estimates of the impact on re-employment and earnings of the two most popular active labour programmes used during the economic transition in Hungary: retraining and public service employment (PSE). To adjust for non-random assignment of programme participants, net impacts were computed using matched pair samples and regression models. The evidence suggests retraining may improve the chance for reemployment, is unlikely to improve re-employment earnings, but may improve job durability. Net societal benefits could be improved by retraining relatively more males, older persons, and those with less education. PSE does not appear to provide a reliable path to a regular non-subsidized job, and may even lower re-employment earnings. PSE might best be viewed as an income transfer programme having the collateral benefit of maintaining basic work habits. The net societal impact of PSE could increase if it involved relatively more females and older persons. Copyright The European Bank for Reconstruction and Development, 1997.

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Bibliographic Info

Article provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.

Volume (Year): 5 (1997)
Issue (Month): 2 (November)
Pages: 453-484

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Handle: RePEc:bla:etrans:v:5:y:1997:i:2:p:453-484

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Cited by:
  1. Gyula Nagy & Peter Galasi, 1999. "Outflows from Insured Unemployment in Hungary, 1992-1996," Budapest Working Papers on the Labour Market 9903, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  2. Berger, Mark C. & Earle, John S. & Peter, Klara Sabirianova, 2001. "Worker Training in a Restructuring Economy: Evidence from the Russian Transition," IZA Discussion Papers 361, Institute for the Study of Labor (IZA).

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