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Inquiry Regarding The Sustainability Of Active Labor Market Policies In Romania

Author

Listed:
  • POLIMENI John M.

    (Albany College of Pharmacy and Health Sciences, USA)

  • IORGULESCU Raluca Ioana

    (Institute for Economic Forecasting−NIER, Romanian Academy, Romania)

Abstract

Active labor market policies (ALMP) are often used to assist in structural adjustment, including change to information society, and to prevent the jobless from getting ensnared in long-term unemployment. ALMPs can help reduce dependency on public transfers, especially in recent years when countries have struggled maintaining financial sustainability due to the global financial crisis and large public debt, by assisting workers in finding jobs. The main types of ALMPs have different ways of accomplishing the same objectives, chief among those reducing unemployment. As a result, ALMPs are frequently costly. There are two measures to determine the importance of ALMPs at the macro level: 1) the number of workers in an ALMP program as a share of the labor force; and 2) the public expenditures on ALMPs as a percentage of GDP. This paper will focus on the second measure, public expenditures on ALMPs as a percentage of GDP, to examine the importance of ALMPs in Romania, the financial sustainability of the public policies, and attempt to empirically illustrate how they impact the labor market. The paper concludes with a discussion of the policy issues associated with ALMPs in Romania.

Suggested Citation

  • POLIMENI John M. & IORGULESCU Raluca Ioana, 2015. "Inquiry Regarding The Sustainability Of Active Labor Market Policies In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 134-143, July.
    • Handle: RePEc:cbu:jrnlec:y:2015:v:special:p:134-143
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    References listed on IDEAS

    as
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    3. Vanhala, Juuso & Bonthuis, Boele & Jarvis, Valerie, 2013. "What’s going on behind the euro area Beveridge curve(s)?," Working Paper Series 1586, European Central Bank.
    4. Bocean, Claudiu George, 2007. "The Impact of Active Labour Market Policies in Romania," MPRA Paper 10397, University Library of Munich, Germany.
    5. Olivier Blanchard & Florence Jaumotte & Prakash Loungani, 2014. "Labor market policies and IMF advice in advanced economies during the Great Recession," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-23, December.
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