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Evaluating Active Labor Market Programs in Romania

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  • Rodríguez-Planas, Núria

    () (Queens College, CUNY)

  • Benus, Jacob

    () (affiliation not available)

Abstract

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.

Suggested Citation

  • Rodríguez-Planas, Núria & Benus, Jacob, 2006. "Evaluating Active Labor Market Programs in Romania," IZA Discussion Papers 2464, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp2464
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    Cited by:

    1. Alessio Brown & Johannes Koettl, 2015. "Active labor market programs - employment gain or fiscal drain?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-36, December.
    2. World Bank, 2012. "Republic of Lebanon--Good Jobs Needed : The Role of Macro, Investment, Education, Labor and Social Protection Policies," World Bank Other Operational Studies 13217, The World Bank.
    3. Caliendo, Marco & Künn, Steffen & Weißenberger, Martin, 2016. "Personality traits and the evaluation of start-up subsidies," European Economic Review, Elsevier, vol. 86(C), pages 87-108.
    4. Caliendo, Marco & Künn, Steffen & Mahlstedt, Robert, 2017. "The return to labor market mobility: An evaluation of relocation assistance for the unemployed," Journal of Public Economics, Elsevier, vol. 148(C), pages 136-151.
    5. Zimmermann, Klaus F. & Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda, 2013. "Youth Unemployment and Vocational Training," Foundations and Trends(R) in Microeconomics, now publishers, vol. 9(1–2), pages 1-157, December.
      • Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "Youth Unemployment and Vocational Training," IZA Discussion Papers 6890, Institute for the Study of Labor (IZA).
    6. Hartmut Lehmann & Jochen Kluve, 2010. "Assessing Active Labour Market Policies in Transition Economies," AIEL Series in Labour Economics,in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?, edition 1, chapter 11, pages 275-307 AIEL - Associazione Italiana Economisti del Lavoro.
    7. Caliendo, Marco & Künn, Steffen & Mahlstedt, Robert, 2017. "Mobility Assistance Programmes for Unemployed Workers, Job Search Behaviour and Labour Market Outcomes," IZA Discussion Papers 11169, Institute for the Study of Labor (IZA).
    8. Diego Angel-Urdinola & Rene Leon-Solano, 2013. "A reform agenda for improving the delivery of ALMPs in the MENA region," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-25, December.
    9. POLIMENI John M. & IORGULESCU Raluca Ioana, 2015. "Inquiry Regarding The Sustainability Of Active Labor Market Policies In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 134-143, July.
    10. Holger Bonin & Ulf Rinne, 2014. "‘Beautiful Serbia’ - objective and subjective outcomes of active labour market policy in a transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 43-67, January.
    11. Wennberg, Karl & Stadin, Evelina & Bergström, Andreas, 2014. "How policy could handle workplace digitization," Ratio Working Papers 237, The Ratio Institute.
    12. Almeida, Rita & Arbelaez, Juliana & Honorati, Maddalena & Kuddo, Arvo & Lohmann, Tanja & Ovadiya, Mirey & Pop, Lucian & Puerta, Maria Laura Sanchez & Weber, Michael, 2012. "Improving access to jobs and earnings opportunities : the role of activation and graduation policies in developing countries," Social Protection and Labor Policy and Technical Notes 67610, The World Bank.
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    14. Manuela Deidda & Adriana Di Liberto & Marta Foddi & Giovanni Sulis, 2015. "Employment subsidies, informal economy and women’s transition into work in a depressed area: evidence from a matching approach," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-25, December.
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    16. Fervers, Lukas & Brändle, Tobias & Webel, Carina, 2014. "Decomposing a Matching Estimation - Correlated Unobserved non-random Selection, Substitution, and Causal Effects in a Large Scale ALMP Program in Germany," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100500, Verein für Socialpolitik / German Economic Association.
    17. Chung Choe & Alfonso Flores-Lagunes & Sang-Jun Lee, 2015. "Do dropouts with longer training exposure benefit from training programs? Korean evidence employing methods for continuous treatments," Empirical Economics, Springer, vol. 48(2), pages 849-881, March.
    18. F. Alfonso Arellano, 2010. "Do Training Programmes Get The Unemployed Back To Work? A Look At The Spanish Experience," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 18(2), pages 39-65, Autumn.
    19. Roman, Monica, 2008. "The efficiency analysis applied for the evaluation of labour market policies: Study case for Romania," MPRA Paper 20332, University Library of Munich, Germany, revised Nov 2008.
    20. World Bank, 2013. "Reviving Romania's Growth and Convergence Challenges and Opportunities : A Country Economic Memorandum," World Bank Other Operational Studies 16036, The World Bank.
    21. Moral-Arce, Ignacio & Martín-Román, Javier & Martín-Román, Ángel L., 2018. "Cessation of activity benefit of Spanish self-employed workers: a heterogeneous impact evaluation," MPRA Paper 85111, University Library of Munich, Germany.
    22. Lilas Demmou & Andreas Wörgötter, 2015. "Boosting Productivity in Russia: Skills, Education and Innovation," OECD Economics Department Working Papers 1189, OECD Publishing.
    23. L. Behrenz & L. Delander & J. Månsson, 2016. "Is Starting a Business a Sustainable way out of Unemployment? Treatment Effects of the Swedish Start-up Subsidy," Journal of Labor Research, Springer, vol. 37(4), pages 389-411, December.
    24. Wulfgramm, Melike & Fervers, Lukas, 2013. "Unemployment and Subsequent Employment Stability: Does Labour Market Policy Matter?," IZA Discussion Papers 7193, Institute for the Study of Labor (IZA).
    25. 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

    Keywords

    transition economies; net social benefits; propensity score matching; active labour market programs;

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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