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Evaluative Active Labor Market Programmes in Romania

  • Nuria Rodriguez-Planas†
  • Jacob Benus

Successful implementation of active labor market programmes is of paramount importance for developed, developing, and transition economies. In this paper, we show that these programmes do work for transition economies. Using unusually rich (for transition economies) follow-up survey data and propensity score matching techniques, we evaluate the presence of effects from joining one of four active labour market programmes implemented in Romania in the late 1990s compared to the no-programme state. We find that three programmes (training and retraining, self-employment assistance, and employment and relocation services) had success in improving participants' economic outcomes and were costbeneficial from society’s perspective. In contrast, public employment was found detrimental for the employment prospects of its participants.

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Paper provided by FEDEA in its series Working Papers with number 2007-31.

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Date of creation: Nov 2007
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Handle: RePEc:fda:fdaddt:2007-31
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  1. Kluve, Jochen & Lehmann, Hartmut & Schmidt, Christoph M., 2001. "Disentangling Treatment Effects of Polish Active Labor Market Policies: Evidence from Matched Samples," IZA Discussion Papers 355, Institute for the Study of Labor (IZA).
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  3. Martin Eichler & Michael Lechner, 2000. "Some Econometric Evidence on the Effectiveness of Active Labour Market Programmes in East Germany," William Davidson Institute Working Papers Series 318, William Davidson Institute at the University of Michigan.
  4. J. David Brown & John S. Earle & Vladimir Gimpelson & Rostislav Kapeliushnikov & Hartmut Lehmann & Almos 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," Upjohn Working Papers and Journal Articles 06-127, W.E. Upjohn Institute for Employment Research.
  5. Lawrence F. Katz, 1994. "Active labor market policies to expand employment and opportunity," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, issue Jan, pages 239-322.
  6. Christopher J. O'Leary & Piotr Kolodziejczyk & Gyorgy Lazar, . "The Net Impact of Active Labour Market Programmes in Hungary and Poland," Upjohn Working Papers and Journal Articles cjo19983, W.E. Upjohn Institute for Employment Research.
  7. John P. Martin, 1998. "What Works Among Active Labour Market Policies: Evidence From OECD Countries' Experiences," OECD Labour Market and Social Policy Occasional Papers 35, OECD Publishing.
  8. Marco Caliendo & Sabine Kopeinig, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," Discussion Papers of DIW Berlin 485, DIW Berlin, German Institute for Economic Research.
  9. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
  10. Jochen Kluve & Hartmut Lehmann & Christophe M. Schmidt, 1999. "Active Labor Market Policies in Poland: Human Capital Enhancement, Stigmatization or Benefit Churning?," LICOS Discussion Papers 8099, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  11. Catalin Pauna & John S. Earle, 1998. "Long-term unemployment, social assistance and labor market policies in Romania," Empirical Economics, Springer, vol. 23(1/2), pages 203-235.
  12. Dar, Amit & Tzannatos, Zafiris, 1999. "Active labor market programs: a review of the evidence from evaluations," Social Protection Discussion Papers 20116, The World Bank.
  13. 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.
  14. Lechner, Michael & Melly, Blaise, 2007. "Earnings Effects of Training Programs," IZA Discussion Papers 2926, Institute for the Study of Labor (IZA).
  15. Kraus, Florian & Puhani, Patrick A. & Steiner, Viktor, 1997. "Employment Effects of Publicly Financed Training Programs The East German Experience," ZEW Discussion Papers 97-33, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  16. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  17. Caliendo, Marco & Hujer, Reinhard & Thomsen, Stephan L., 2005. "The Employment Effects of Job Creation Schemes in Germany: A Microeconometric Evaluation," IZA Discussion Papers 1512, Institute for the Study of Labor (IZA).
  18. Vodopivec, Milan, 1999. "Does the Slovenian Public Work Program Increase Participants' Chances to Find a Job?," Journal of Comparative Economics, Elsevier, vol. 27(1), pages 113-130, March.
  19. 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.
  20. Lechner, Michael, 1999. "Earnings and Employment Effects of Continuous Off-the-Job Training in East Germany after Unification," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(1), pages 74-90, January.
  21. Fitzenberger, Bernd & Prey, Hedwig, 2000. "Evaluating Public Sector Sponsored Training in East Germany," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 497-520, July.
  22. Lehmann, Hartmut, 1995. "Active labor market policies in the OECD and in selected transition economies," Policy Research Working Paper Series 1502, The World Bank.
  23. 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.
  24. Earle, John S. & Pauna, Catalin, 1996. "Incidence and duration of unemployment in Romania," European Economic Review, Elsevier, vol. 40(3-5), pages 829-837, April.
  25. Tito Boeri & Michael Burda, 1997. "Active Labour Market Policies, Job Matching and the Czech Miracle," Politická ekonomie, University of Economics, Prague, vol. 1997(2), pages 183-192.
  26. Christopher J. O'Leary, 1995. "An Impact Analysis of Labor Market Programs in Hungary," Upjohn Working Papers and Journal Articles 95-30, W.E. Upjohn Institute for Employment Research.
  27. Hujer, Reinhard & Wellner, Marc, 2000. "The Effects of Public Sector Sponsored Training on Individual Employment Performance in East Germany," IZA Discussion Papers 141, Institute for the Study of Labor (IZA).
  28. Heckman, James J & Smith, Jeffrey A, 1999. "The Pre-programme Earnings Dip and the Determinants of Participation in a Social Programme. Implications for Simple Programme Evaluation Strategies," Economic Journal, Royal Economic Society, vol. 109(457), pages 313-48, July.
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