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Active labor market policies in Romania and Bulgaria: an empirical examination

Author

Listed:
  • John M. Polimeni

    (Albany College of Pharmacy and Health Sciences,USA)

  • Raluca I. Iorgulescu

    (Institute for Economic Forecasting-NIER, Romanian Academy, Bucharest, Romania)

Abstract

Active labor market policies (ALMPs) have long been used to assist in structural adjustments and to prevent the jobless from getting ensnared in long-term unemployment. ALMPs are often used to help stop the dependency on public transfers, especially in recent years when countries have dealt with a global financial crisis and large public debt. The four main types of ALMPs have different ways of accomplishing the same objectives, chief among those reducing unemployment. As a result, ALMPs are often costly. There are two measures to determine the importance of ALMPs at the macro level: 1) the number of workers in an ALMP program as a share of the labor force; and 2) the public expenditures on ALMPs. This paper will focus on the second measure, public expenditures on ALMPs, to examine the importance of ALMPs in Romania and Bulgaria. The paper concludes with a discussion of the policy issues associated with ALMPs.

Suggested Citation

  • John M. Polimeni & Raluca I. Iorgulescu, 2015. "Active labor market policies in Romania and Bulgaria: an empirical examination," HOLISTICA Journal of Business and Public Administration, Association Holistic Research Academic (HoRA), vol. 6(2), pages 20-31, July-Dece.
    • Handle: RePEc:urn:urnste:v:6:y:2015:i:2:p:20-31
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    More about this item

    Keywords

    active labor market policies; unemployment;

    JEL classification:

    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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