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Evaluating active labor market programs in Romania

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  • Núria Rodríguez-Planas

    ()

  • Benus Jacob

Abstract

We evaluate the presence of effects from joining one of four active labour market programs in Romania in the late 1990s compared to the no-program state. Using rich survey data and propensity score matching, we find that three programs (training and retraining, small business assistance, and employment and relocation services) had success in improving participants' economic outcomes and were cost-beneficial from society’s perspective. In contrast, public employment was found detrimental for the employment prospects of its participants. We also find that there is considerable heterogeneity, which suggests that targeting may improve the effectiveness of these programs.

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 38 (2010)
Issue (Month): 1 (February)
Pages: 65-84

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Handle: RePEc:spr:empeco:v:38:y:2010:i:1:p:65-84

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Related research

Keywords: Active labor market programs; Propensity score matching; Transition economies; Pre-program employment information; J21; J31; J64; J65; J68;

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References

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  1. Terrell, Katherine & Sorm, Vit, 1999. "Labor Market Policies and Unemployment in the Czech Republic," Journal of Comparative Economics, Elsevier, vol. 27(1), pages 33-60, March.
  2. Kluve, Jochen & Lehmann, Hartmut & Schmidt, Christoph M, 1999. "Active Labour Market Policies in Poland: Human Capital Enhancement, Stigmatization or Benefit Churning?," CEPR Discussion Papers 2059, C.E.P.R. Discussion Papers.
  3. Michael Lechner & Ruth Miquel & Conny Wunsch, 2004. "Long-run Effects of Public Sector Sponsored Training in West Germany," University of St. Gallen Department of Economics working paper series 2004 2004-19, Department of Economics, University of St. Gallen.
  4. Burda, Michael C & Lubyová, Martina, 1995. "The Impact of Active Labour Market Policies: A Closer Look at the Czech and Slovak Republics," CEPR Discussion Papers 1102, C.E.P.R. Discussion Papers.
  5. Brown, J. David & Earle, John S. & Gimpelson, Vladimir & Kapeliushnikov, Rostislav & Lehmann, Hartmut & Telegdy, Álmos & Vantu, Irina & Visan, Ruxandra & Voicu, Alexandru, 2006. "Nonstandard Forms and Measures of Employment and Unemployment in Transition: A Comparative Study of Estonia, Romania, and Russia," IZA Discussion Papers 1961, Institute for the Study of Labor (IZA).
  6. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
  7. Earle, John S. & Pauna, Catalin, 1996. "Incidence and duration of unemployment in Romania," European Economic Review, Elsevier, vol. 40(3-5), pages 829-837, April.
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  9. Michael Lechner & Ruth Miquel & Conny Wunsch, 2005. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany after Unification," University of St. Gallen Department of Economics working paper series 2005 2005-15, Department of Economics, University of St. Gallen.
  10. Boeri, Tito & Burda, Michael C., 1996. "Active labor market policies, job matching and the Czech miracle," European Economic Review, Elsevier, vol. 40(3-5), pages 805-817, April.
  11. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  12. Lawrence F. Katz, 1994. "Active labor market policies to expand employment and opportunity," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, issue Jan, pages 239-322.
  13. Puhani, Patrick A, 1998. "Advantage Through Training? A Microeconometric Evaluation of the Employment Effects of Active Labour Market Programmes in Poland," CEPR Discussion Papers 2000, C.E.P.R. Discussion Papers.
  14. J. Kluve & H. Lehmann & C. M. Schmidt, 2007. "Disentangling Treatment Effects of Active Labor Market Policies: The Role of Labor Force Status Sequences," Working Papers 620, Dipartimento Scienze Economiche, Universita' di Bologna.
  15. Oyer, Paul, 2004. "Recall bias among displaced workers," Economics Letters, Elsevier, vol. 82(3), pages 397-402, March.
  16. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  17. Miana Plesca & Jeffrey Smith, 2007. "Evaluating multi-treatment programs: theory and evidence from the U.S. Job Training Partnership Act experiment," Empirical Economics, Springer, vol. 32(2), pages 491-528, May.
  18. Catalin Pauna & John S. Earle, 1998. "Long-term unemployment, social assistance and labor market policies in Romania," Empirical Economics, Springer, vol. 23(1/2), pages 203-235.
  19. Dar, Amit & Tzannatos, Zafiris, 1999. "Active labor market programs: a review of the evidence from evaluations," Social Protection Discussion Papers 20116, The World Bank.
  20. Lehmann, Hartmut, 1995. "Active labor market policies in the OECD and in selected transition economies," Policy Research Working Paper Series 1502, The World Bank.
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Citations

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Cited by:
  1. Zimmermann, Klaus F. & Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda, 2013. "Youth Unemployment and Vocational Training," Foundations and Trends(R) in Microeconomics, now publishers, vol. 9(1–2), pages 1-157, December.
    • Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "Youth Unemployment and Vocational Training," IZA Discussion Papers 6890, Institute for the Study of Labor (IZA).
  2. Roman, Monica, 2008. "The efficiency analysis applied for the evaluation of labour market policies: Study case for Romania," MPRA Paper 20332, University Library of Munich, Germany, revised Nov 2008.
  3. Alessio J. G. Brown & Johannes Koettl, 2012. "Active Labor Market Programs - Employment Gain or Fiscal Drain?," Kiel Working Papers 1785, Kiel Institute for the World Economy.
  4. World Bank, 2013. "Reviving Romania's Growth and Convergence Challenges and Opportunities : A Country Economic Memorandum," World Bank Other Operational Studies 16036, The World Bank.
  5. H. Lehmann & J. Kluve, 2008. "Assessing Active Labor Market Policies in Transition Economies," Working Papers 646, Dipartimento Scienze Economiche, Universita' di Bologna.
  6. Choe, Chung & Flores-Lagunes, Alfonso & Lee, Sang-Jun, 2011. "Do Dropouts Benefit from Training Programs? Korean Evidence Employing Methods for Continuous Treatments," IZA Discussion Papers 6064, Institute for the Study of Labor (IZA).
  7. Wulfgramm, Melike & Fervers, Lukas, 2013. "Unemployment and Subsequent Employment Stability: Does Labour Market Policy Matter?," IZA Discussion Papers 7193, Institute for the Study of Labor (IZA).
  8. World Bank, 2012. "Republic of Lebanon--Good Jobs Needed : The Role of Macro, Investment, Education, Labor and Social Protection Policies," World Bank Other Operational Studies 13217, The World Bank.
  9. Diego Angel-Urdinola & Rene Leon-Solano, 2013. "A reform agenda for improving the delivery of ALMPs in the MENA region," IZA Journal of Labor Policy, Springer, vol. 2(1), pages 1-25, December.
  10. Bonin, Holger & Rinne, Ulf, 2006. "Beautiful Serbia," IZA Discussion Papers 2533, Institute for the Study of Labor (IZA).
  11. M. Deidda & A. Di Liberto & M. Foddi & G. Sulis, 2012. "Employment Subsidies, Informal Economy and Women’s Transition into Work in a Depressed Area: Evidence from a Matching Approach," Working Paper CRENoS 201216, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  12. Almeida, Rita & Arbelaez, Juliana & Honorati, Maddalena & Kuddo, Arvo & Lohmann, Tanja & Ovadiya, Mirey & Pop, Lucian & Puerta, Maria Laura Sanchez & Weber, Michael, 2012. "Improving access to jobs and earnings opportunities : the role of activation and graduation policies in developing countries," Social Protection Discussion Papers 67610, The World Bank.

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