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The Impact of Active Labour Market Policies in Romania

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Author Info
Bocean, Claudiu George

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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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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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Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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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 Labour Market Policy Evaluation. [Downloadable!]
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  2. 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. [Downloadable!] (restricted)
  3. Holmlund, Bertil & Linden, Johan, 1993. "Job matching, temporary public employment, and equilibrium unemployment," Journal of Public Economics, Elsevier, vol. 51(3), pages 329-343, July. [Downloadable!] (restricted)
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  4. Michael Rosholm & Michael Svarer, 2004. "Estimating the Threat Effect of Active Labour Market Programmes," Economics Working Papers 2004-6, School of Economics and Management, University of Aarhus. [Downloadable!]
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  5. Lalive, R. & Ours, J.C. van & Zweimueller, J., 2000. "The impact of active labor market programs and benefit entitlement rules on the duration of unemployment," Discussion Paper 41, Tilburg University, Center for Economic Research. [Downloadable!]
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  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.
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