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The Impact of Active Labour Market Policies: A Closer Look at the Czech and Slovak Republics

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  • Burda, Michael C
  • Lubyová, Martina

Abstract

This paper investigates the impact of active labour market policies (ALMPs) in the Czech Republic and Slovakia over the period 1991-4. Econometric results suggest that levels of these policies - including a dramatic reduction of ALMP spending in Slovakia by more than two-thirds in 1993 - contributed to the divergence in labour market outcomes in the two countries. All other things equal, raising average Slovak district ALMP spending in 1993 to 1992 levels would have been associated with at least a 30% increase in monthly outflows out of unemployment into jobs. While aggregate ALMPs are positively associated with aggregate vacancies, cross-sectional correlation at the district level is negative in the Czech Republic, suggesting a degree of local responsiveness which is less evident in Slovakia.

Suggested Citation

  • 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.
    • Handle: RePEc:cpr:ceprdp:1102
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    More about this item

    Keywords

    Active Labour Market Policies; Czech and Slovak Republics; Matching Function; Unemployment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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