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The Impact of Active Labour Market Policies: A Closer Look at the Czech and Slovak Republics


  • Burda, Michael C
  • Lubyová, Martina


This paper investigates the impact of active labour market policies (ALMPs) in the Czech Republic and Slovakia over the period 1991-4. Econometric results suggest that levels of these policies - including a dramatic reduction of ALMP spending in Slovakia by more than two-thirds in 1993 - contributed to the divergence in labour market outcomes in the two countries. All other things equal, raising average Slovak district ALMP spending in 1993 to 1992 levels would have been associated with at least a 30% increase in monthly outflows out of unemployment into jobs. While aggregate ALMPs are positively associated with aggregate vacancies, cross-sectional correlation at the district level is negative in the Czech Republic, suggesting a degree of local responsiveness which is less evident in Slovakia.

Suggested Citation

  • 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.
  • Handle: RePEc:cpr:ceprdp:1102

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    References listed on IDEAS

    1. Lars E.O. Svensson, 1994. "Estimating and Interpreting Forward Interest Rates: Sweden 1992 - 1994," NBER Working Papers 4871, National Bureau of Economic Research, Inc.
    2. Lars E.O. Svensson, 1993. "The Simplest Test of Inflation Target Credibility," NBER Working Papers 4604, National Bureau of Economic Research, Inc.
    3. Svensson, L.E.O., 1993. "Term, Inflation and Foreign Exchange Risk Premia: A Unified Treatment," Papers 548, Stockholm - International Economic Studies.
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    Cited by:

    1. Lubyova, Martina & van Ours, Jan C., 1999. "Effects of Active Labor Market Programs on the Transition Rate from Unemployment into Regular Jobs in the Slovak Republic," Journal of Comparative Economics, Elsevier, vol. 27(1), pages 90-112, March.
    2. Terrell, Katherine & Sorm, Vit, 1999. "Labor Market Policies and Unemployment in the Czech Republic," Journal of Comparative Economics, Elsevier, vol. 27(1), pages 33-60, March.
    3. van Ours, Jan C., 2004. "The locking-in effect of subsidized jobs," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 37-55, March.
    4. Kamil Galušèák & Daniel Münich, 2007. "Structural and Cyclical Unemployment: What Can Be Derived from the Matching Function? (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(3-4), pages 102-125, June.
    5. Boeri, Tito, 1997. "Learning from Transition Economies: Assessing Labor Market Policies across Central and Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 25(3), pages 366-384, December.
    6. Lehmann,Hartmut, 1995. "Active labor market policies in the OECD and in selected transition economies," Policy Research Working Paper Series 1502, The World Bank.
    7. Puhani, Patrick A. & Steiner, Viktor, 1996. "Public works for Poland? Active labour market policies during transition," ZEW Discussion Papers 96-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. Daniel Munich & Jan Svejnar & Katherine Terrell, 2001. "Worker-firm Matching and Unemployment in Transition to a Market," Development and Comp Systems 0012011, EconWPA.
    9. Puhani, Patrick A, 1999. "Public Training and Outflows from Unemployment: An Augmented Matching Function Approach on Polish Regional Data," CEPR Discussion Papers 2244, C.E.P.R. Discussion Papers.
    10. Jahn, Elke J. & Wagner, Thomas, 2000. "Substitution and crowding-out effects of active labour market policy," Discussion Papers 2, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    11. Núria Rodríguez-Planas & Benus Jacob, 2010. "Evaluating active labor market programs in Romania," Empirical Economics, Springer, vol. 38(1), pages 65-84, February.
    12. Patrick Puhani & Viktor Steiner, 1997. "The Effectiveness and Efficiency of Active Labour Market Policies in Poland," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 24(3), pages 209-231, October.
    13. repec:eee:labchp:v:3:y:1999:i:pb:p:2809-2857 is not listed on IDEAS
    14. Puhani, Patrick A., 1999. "Estimating the effects of public training on Polish unemployment by way of the augmented matching function approach," ZEW Discussion Papers 99-38, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item


    Active Labour Market Policies; Czech and Slovak Republics; Matching Function; Unemployment;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies


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