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Assessing Active Labor Market Policies in Transition Economies

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  • H. Lehmann
  • J. Kluve

Abstract

With the beginning of economic reform in the formerly centrally planned economies of Central and Eastern Europe (CEE), open unemployment rapidly reached comparable levels to those in Western economies. Governments in the region reacted to this rise by adopting active labor market policies (ALMP) as an important tool in the fight against unemployment. Before reviewing the evidence on the efficacy of such policies we look at the scope and the rationale of ALMP measures in a transitional context. Since government budgets are very tight in these countries it is important to evaluate ALMP in a rigorous fashion. The paper analyzes macroeconometric and microeconometric methods of program evaluation, as they were applied in transition economies. Both these approaches have a raison d’être and should be understood as complementing. Providing a selective review of the literature, some of the strengths and the pitfalls of the two approaches are highlighted. We also point to the lessons one can draw from the surveyed studies for a better understanding of how active measures affect labor market outcomes in this set of countries.

Suggested Citation

  • H. Lehmann & J. Kluve, 2008. "Assessing Active Labor Market Policies in Transition Economies," Working Papers 646, Dipartimento Scienze Economiche, Universita' di Bologna.
  • Handle: RePEc:bol:bodewp:646
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    References listed on IDEAS

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    1. Núria Rodríguez-Planas & Benus Jacob, 2010. "Evaluating active labor market programs in Romania," Empirical Economics, Springer, vol. 38(1), pages 65-84, February.
    2. Boeri, Tito & Lehmann, Hartmut, 1999. "Unemployment and Labor Market Policies in Transition Countries," Journal of Comparative Economics, Elsevier, vol. 27(1), pages 1-3, March.
    3. Micklewright, John & Nagy, Gyula, 2005. "Job Search Monitoring and Unemployment Duration in Hungary: Evidence from a Randomised Control Trial," IZA Discussion Papers 1839, Institute for the Study of Labor (IZA).
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    5. Boeri, Tito & Burda, Michael C., 1996. "Active labor market policies, job matching and the Czech miracle," European Economic Review, Elsevier, vol. 40(3-5), pages 805-817, April.
    6. Aakvik, Arild & Heckman, James J. & Vytlacil, Edward J., 2005. "Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 15-51.
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    Citations

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    Cited by:

    1. Lehmann, Hartmut & Muravyev, Alexander, 2011. "Labor Markets and Labor Market Institutions in Transition Economies," IZA Discussion Papers 5905, Institute for the Study of Labor (IZA).
    2. Jovan, Zubovic & Jonel, Subic, 2011. "Reviewing development of active labour market policies and the evaluation techniques," MPRA Paper 35282, University Library of Munich, Germany, revised 17 Oct 2011.
    3. World Bank Group & Royal Government of Bhutan Ministry of Labor and Human Resources, 2016. "Bhutan’s Labor Market," World Bank Other Operational Studies 25703, The World Bank.
    4. H. Lehmann & A. Muravyev, 2010. "Labor market institutions and labor market performance: what can we learn from transition countries?," Working Papers 714, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. Bashevska, Marija, 2014. "Политиките На Пазарот На Труд И Сиромаштијата Во Македонија, 2008 - 2013
      [Labour market, employment policies and poverty in R. Macedonia, 2008 - 2013]
      ," MPRA Paper 57768, University Library of Munich, Germany.
    6. repec:ilo:ilowps:467146 is not listed on IDEAS
    7. Peter J. Glick & Crystal Huang & Nelly Mejia, 2015. "The Private Sector and Youth Skills and Employment Programs in Low and Middle-Income Countries," World Bank Other Operational Studies 23260, The World Bank.

    More about this item

    JEL classification:

    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • P50 - Economic Systems - - Comparative Economic Systems - - - General

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