On the New Methodology of Cost‐Benefit Analysis of ALMP – The Case of Serbia
AbstractActive labour market policies are commonly used tool to fight unemployment. In the late 1970s in most developed countries of OECD government expenditures on those policies reached up to 1.5% of GDP. This created a need to evaluate the impact of such measures and perform cost‐benefit analyses. Evaluations have in the previous 30 years been undertaken by using several methods: experimental and quasi‐experimental, measurements and evaluations of processes performance, micro and macro analyses. In this paper we have presented and tested a modified approach of cost‐benefit analysis of ALMP viewed as an investment made by a government. The goal was to determine whether by using such an approach it is possible to provide new information to policy makers and to deepen research and further develop a methodology which will be robust enough to serve as a proof of ALMP effectiveness. Initial results of the empirical research in Serbia show very positive results, indicating that especially in the period of recessions, active measures can significantly improve labour market conditions, thus create high levels of return to investments (taking ALMP as an investment). Using aggregate data on all persons being registered as unemployed at the beginning of 2008 and 2009, we have tested how the ALMP impact the potential growth of tax returns. Our findings say that in 2008 there has been a net gain of € 269 million and in 2009 € 166 million in tax returns collected.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42532.
Date of creation: 15 Mar 2012
Date of revision:
Active policies; evaluation; unemployment;
Find related papers by JEL classification:
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-24 (All new papers)
- NEP-MAC-2012-11-24 (Macroeconomics)
- NEP-PBE-2012-11-24 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Calmfors, Lars & Forslund, Anders & Hemström, Maria, 2002.
"Does Active Labour Market Policy Work? Lessons from the Swedish Experiences,"
700, Stockholm University, Institute for International Economic Studies.
- 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.
- Lars Calmfors & Anders Forslund & Maria Hemström, 2002. "Does Active Labour Market Policy Work? Lessons from the Swedish Experiences," CESifo Working Paper Series 675, CESifo Group Munich.
- Martin Neil Baily & James Tobin, 1977. "Macroeconomic Effects of Selective Public Employment and Wage Subsidies," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 8(2), pages 511-544.
- Bonin, Holger & Rinne, Ulf, 2006.
IZA Discussion Papers
2533, Institute for the Study of Labor (IZA).
- Holger Bonin & Ulf Rinne, 2014. "‘Beautiful Serbia’ - objective and subjective outcomes of active labour market policy in a transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 43-67, 01.
- Robinson, Peter, 2000. "Active Labour-Market Policies: A Case of Evidence-Based Policy-Making?," Oxford Review of Economic Policy, Oxford University Press, vol. 16(1), pages 13-26, Spring.
- Tatiana Mosteanu & Mihaela Iacob, 2008. "Theories And Approaches Regarding The Cost – Benefit Analysis Role And Principles," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 11(11(528)(s), pages 7-13, November.
- David H. Greenberg & Charles Michalopoulos & Philip K. Robins, 2003. "A meta-analysis of government-sponsored training programs," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(1), pages 31-53, October.
- Hujer, Reinhard & Blien, Uwe & Caliendo, Marco & Zeiss, Christopher, 2002.
"Macroeconometric Evaluation of Active Labour Market Policies in Germany – A Dynamic Panel Approach Using Regional Data,"
IZA Discussion Papers
616, Institute for the Study of Labor (IZA).
- Reinhard Hujer & Uwe Blien & Marco Caliendo & Christopher Zeiss, 2006. "Macroeconometric Evaluation of Active Labour Market Policies in Germany. A Dynamic Panel Approach Using Regional Data," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 14, pages 287-309 AIEL - Associazione Italiana Economisti del Lavoro.
- Hujer, Reinhard & Caliendo, Marco & Zeiss, Christopher & Blien, Uwe, 2002. "Macroeconometric evaluation of active labour market policies in Germany - a dynamic panel approach using regional data," ERSA conference papers ersa02p225, European Regional Science Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.