The Effectiveness of Local Government Active Labor Programs: The Case of the Benefits†to†Wages Program in Russia

This paper presents the results of an implementation evaluation of a Benefits†to†Wages (BtW) program operated in Perm, Russia. In part because of the low level of support for Active Labor Market Programs (ALPs) by Russian national and regional governments, municipalities have begun implementing ALPs of their own. Participation in the BtW program is limited to an unemployed adult in very low income family where at least one child is present. The program appears to be highly successful, with 74% of applicants finding jobs while still participating in the program. The assessment found that participation in the program, and job acquisition in particular, were important in raising participant families' incomes. Nevertheless, only about 10% of participants with jobs were lifted out of poverty. Receipt of certain social services and Employment Services, including training, had little impact on which participants succeeded in finding a job. Similarly, person attributes, such as education and prior work experience paid no statistically significant role. This pattern is consistent with a situation in which job requirements are modest and are met by most program participants. Various patterns indicate the program did have a positive effect on job acquisition, although the absence of a control group prevents any stronger statement.