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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. 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.
  2. 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.
  3. Jochen Kluve & Hartmut Lehmann & Christoph M. Schmidt, 2002. "Disentangling Treatment Effects of Polish Active Labor Market Policies: Evidence from Matched Samples," William Davidson Institute Working Papers Series 447, William Davidson Institute at the University of Michigan.
  4. 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.
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  7. 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.
  8. 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.
  9. 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.
  10. Caliendo, Marco & Kopeinig, Sabine, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," IZA Discussion Papers 1588, Institute for the Study of Labor (IZA).
  11. Milan Vodopivec, 1998. "Does the Slovenian Public Work Program Increase Participants' Chances to Find a Job?," William Davidson Institute Working Papers Series 214, William Davidson Institute at the University of Michigan.
  12. Kluve, Jochen & Lehmann, Hartmut & Schmidt, Christoph M., 1999. "Active Labor Market Policies in Poland: Human Capital Enhancement, Stigmatization or Benefit Churning," IZA Discussion Papers 30, Institute for the Study of Labor (IZA).
  13. 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.
  14. Christopher J. O'Leary, 2004. "Evaluating the Effectiveness of Labor Exchange Services," Book chapters authored by Upjohn Institute researchers, W.E. Upjohn Institute for Employment Research.
  15. 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.
  16. Imbens, Guido & Abadie, Alberto, 2008. "On the Failure of the Bootstrap for Matching Estimators," Scholarly Articles 3043415, Harvard University Department of Economics.
  17. 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.
  18. 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.
  19. 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).
  20. Dar, Amit & Tzannatos, Zafiris, 1999. "Active labor market programs: a review of the evidence from evaluations," Social Protection Discussion Papers 20116, The World Bank.
  21. Lechner, Michael & Melly, Blaise, 2007. "Earnings Effects of Training Programs," CEPR Discussion Papers 6400, C.E.P.R. Discussion Papers.
  22. 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.
  23. 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).
  24. Puhani, Patrick A., 1998. "Advantage through training? A microeconometric evaluation of the employment effects of active labour market programmes in Poland," ZEW Discussion Papers 98-25, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  25. 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.
  26. 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.
  27. 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.
  28. Lehmann, Hartmut, 1995. "Active labor market policies in the OECD and in selected transition economies," Policy Research Working Paper Series 1502, The World Bank.
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