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Evaluating active labor market programs in Romania

  • Núria Rodríguez-Planas

    ()

  • Benus Jacob

We evaluate the presence of effects from joining one of four active labour market programs in Romania in the late 1990s compared to the no-program state. Using rich survey data and propensity score matching, we find that three programs (training and retraining, small business assistance, and employment and relocation services) had success in improving participants' economic outcomes and were cost-beneficial from society’s perspective. In contrast, public employment was found detrimental for the employment prospects of its participants. We also find that there is considerable heterogeneity, which suggests that targeting may improve the effectiveness of these programs.

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Article provided by Springer in its journal Empirical Economics.

Volume (Year): 38 (2010)
Issue (Month): 1 (February)
Pages: 65-84

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Handle: RePEc:spr:empeco:v:38:y:2010:i:1:p:65-84
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  1. Puhani, Patrick A, 1998. "Advantage Through Training? A Microeconometric Evaluation of the Employment Effects of Active Labour Market Programmes in Poland," CEPR Discussion Papers 2000, C.E.P.R. Discussion Papers.
  2. J David Brown & John S Earle & Vladimir Gimpelson & Rostislav Kapeliushnikov & Hartmut Lehmann & �lmos Telegdy & Irina Vantu & Ruxandra Visan & Alexandru Voicu, 2006. "Nonstandard Forms and Measures of Employment and Unemployment in Transition: A Comparative Study of Estonia, Romania, and Russia," Comparative Economic Studies, Palgrave Macmillan, vol. 48(3), pages 435-457, September.
  3. Dar, Amit & Tzannatos, Zafiris, 1999. "Active labor market programs: a review of the evidence from evaluations," Social Protection Discussion Papers 20116, The World Bank.
  4. Michael Lechner & Ruth Miquel & Conny Wunsch, 2011. "Long‐Run Effects Of Public Sector Sponsored Training In West Germany," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 742-784, 08.
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  8. Michael Lechner & Ruth Miquel & Conny Wunsch, 2005. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany after Unification," University of St. Gallen Department of Economics working paper series 2005 2005-15, Department of Economics, University of St. Gallen.
  9. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
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  13. Kluve, Jochen & Lehmann, Hartmut & Schmidt, Christoph M, 1999. "Active Labour Market Policies in Poland: Human Capital Enhancement, Stigmatization or Benefit Churning?," CEPR Discussion Papers 2059, C.E.P.R. Discussion Papers.
  14. Katherine Terrell & Vit Sorm, 1998. "Labor Market Policies and Unemployment in the Czech Republic," William Davidson Institute Working Papers Series 216, William Davidson Institute at the University of Michigan.
  15. Lehmann, Hartmut, 1995. "Active labor market policies in the OECD and in selected transition economies," Policy Research Working Paper Series 1502, The World Bank.
  16. J. Kluve & H. Lehmann & C. M. Schmidt, 2007. "Disentangling Treatment Effects of Active Labor Market Policies: The Role of Labor Force Status Sequences," Working Papers 620, Dipartimento Scienze Economiche, Universita' di Bologna.
  17. Irac, D. & Minoiu, C., 2006. "Risk Insurance in a Transition Economy: Evidence from Rural Romania," Working papers 154, Banque de France.
  18. Burda, Michael C & Lubyová, Martina, 1995. "The Impact of Active Labour Market Policies: A Closer Look at the Czech and Slovak Republics," CEPR Discussion Papers 1102, C.E.P.R. Discussion Papers.
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  20. Oyer, Paul, 2004. "Recall bias among displaced workers," Economics Letters, Elsevier, vol. 82(3), pages 397-402, March.
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