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The Impact of Active Labour Market Policies in Romania

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  • Bocean, Claudiu George

Abstract

Following the predominance of macroeconomic stabilisation policies and passive policies for alleviate the reform shock in the first phase of transition, active labour market policies (ALMPs) have now come to play a more important role in transition economies. In this paper I present a theoretical and empirical analysis of different types of active labour market policies (ALMPs). In my empirical analysis I use data on Romania covering the time period 2000-2005. I find that subsidized jobs are the most effective program to bring down unemployment. Labour market training and temporary employment in public works in community service have a positive impact. Despite their overall positive impact on unemployment rate, their budgetary cost is high and they are likely to be subject to diminishing returns as employment rates rise.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10397.

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Date of creation: 11 Nov 2007
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Handle: RePEc:pra:mprapa:10397

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  1. Calmfors, Lars & Forslund, Anders & Hemström, Maria, 2002. "Does active labour market policy work? Lessons from the Swedish experiences," Working Paper Series 2002:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Holmlund, B. & Linden, J., 1991. "Job Matching, Temporary Public Employment, and Equilibrium Unemployment," Papers 1991l, Uppsala - Working Paper Series.
  3. Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345, Octomber.
  4. Rosholm, Michael & Svarer, Michael, 2004. "Estimating the Threat Effect of Active Labour Market Programmes," IZA Discussion Papers 1300, Institute for the Study of Labor (IZA).
  5. Lalive, R. & Ours, J.C. van & Zweimüller, J., 2000. "The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment," Discussion Paper 2000-41, Tilburg University, Center for Economic Research.
  6. Boeri, Tito, 1997. "Labour-Market Reforms in Transition Economies," Oxford Review of Economic Policy, Oxford University Press, vol. 13(2), pages 126-40, Summer.
  7. Tito Boeri, 1994. ""Transitional" unemployment," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(1), pages 1-25, 03.
  8. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment?," Economic Policy, CEPR & CES & MSH, vol. 17(35), pages 409-448, October.
  9. Lalive, Rafael & van Ours, Jan C & Zweimüller, Josef, 2000. "The Impact Of Active Labour Market Policies And Benefit Entitlement Rules On The Duration Of Unemployment," CEPR Discussion Papers 2451, C.E.P.R. Discussion Papers.
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Cited by:
  1. Eleni VANGJELI & Sonela STILLO & Marinela TENEQEXHI, 2012. "Impact of Active Labor Market Programs on Employment: Albania’s Case," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(1), pages 16, February.

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