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A stock-flow matching approach to evaluation of public training program in a high unemployment environment

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Author Info
Jekaterina Dmitrijeva (EPEE)
Mihails Hazans (University of Latvia & BICEPS)

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Abstract

Monthly panel (1998-2003) data from regional labor offices in Latvia are used to analyze the matching process in a high unemployment – low labor demand environment and to evaluate the impact of active labor market policy programs on outflows from unemployment. Results suggest that the hiring process is driven by a stock-flow rather than by a traditional matching function: the stock of unemployed at the beginning of the month and flow of vacancies arriving during the month are the key determinants of outflows from unemployment to employment, while stock of vacancies and inflow of unemployed do not play any significant role. We find positive and significant effect of training programs on outflows from unemployment to employment, thus providing strong evidence against recent cuts in training expenditures.

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Paper provided by EconWPA in its series Labor and Demography with number 0506007.

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Length: 30 pages
Date of creation: 25 Jun 2005
Date of revision:
Handle: RePEc:wpa:wuwpla:0506007

Note: Type of Document - pdf; pages: 30. EPEE Working Paper No. 04- 14R
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Web page: http://129.3.20.41

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Related research
Keywords: stock-flow matching; augmented matching function; labor market policy; training; transition countries;

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Find related papers by JEL classification:
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
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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    Other versions:
  2. Burda, Michael & Wyplosz, Charles, 1994. "Gross worker and job flows in Europe," European Economic Review, Elsevier, vol. 38(6), pages 1287-1315, June. [Downloadable!] (restricted)
    Other versions:
  3. Pissarides, C A, 1979. "Job Matchings with State Employment Agencies and Random Search," Economic Journal, Royal Economic Society, vol. 89(356), pages 818-33, December. [Downloadable!] (restricted)
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  5. Burda, Michael C & Profit, Stefan, 1996. "Matching Across Space: Evidence on Mobility in the Czech Republic," CEPR Discussion Papers 1364, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier. [Downloadable!] (restricted)
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  8. Lehmann, Hartmut, 1995. "Active labor market policies in the OECD and in selected transition economies," Policy Research Working Paper Series 1502, The World Bank. [Downloadable!]
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  14. Barbara Petrongolo & Christopher A. Pissarides, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June. [Downloadable!] (restricted)
    Other versions:
  15. Hall, Robert E., 1979. "A theory of the natural unemployment rate and the duration of employment," Journal of Monetary Economics, Elsevier, vol. 5(2), pages 153-169, April. [Downloadable!] (restricted)
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  17. Burda, Michael C, 1992. "Unemployment, Labour Market Institutions and Structural Change in Eastern Europe," CEPR Discussion Papers 746, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  20. 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). [Downloadable!]
    Other versions:
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