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The Impact of Active Labour Market Policies in Romania


  • Bocean, Claudiu George


Following the predominance of macroeconomic stabilisation policies and passive policies for alleviate the reform shock in the first phase of transition, active labour market policies (ALMPs) have now come to play a more important role in transition economies. In this paper I present a theoretical and empirical analysis of different types of active labour market policies (ALMPs). In my empirical analysis I use data on Romania covering the time period 2000-2005. I find that subsidized jobs are the most effective program to bring down unemployment. Labour market training and temporary employment in public works in community service have a positive impact. Despite their overall positive impact on unemployment rate, their budgetary cost is high and they are likely to be subject to diminishing returns as employment rates rise.

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  • Bocean, Claudiu George, 2007. "The Impact of Active Labour Market Policies in Romania," MPRA Paper 10397, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:10397

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    References listed on IDEAS

    1. Jan C. van Ours, 2000. "Do Active Labor Market Policies Help Unemployed Workers to Find and Keep Regular Jobs?," William Davidson Institute Working Papers Series 289, William Davidson Institute at the University of Michigan.
    2. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, June.
    3. Lalive, R. & van Ours, J.C. & Zweimüller, J., 2000. "The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment," Discussion Paper 2000-41, Tilburg University, Center for Economic Research.
    4. Rosholm, Michael & Svarer, Michael, 2004. "Estimating the Threat Effect of Active Labour Market Programmes," IZA Discussion Papers 1300, Institute for the Study of Labor (IZA).
    5. Boeri, Tito, 1997. "Labour-Market Reforms in Transition Economies," Oxford Review of Economic Policy, Oxford University Press, vol. 13(2), pages 126-140, Summer.
    6. Lalive, Rafael & van Ours, Jan C & Zweimüller, Josef, 2000. "The Impact Of Active Labour Market Policies And Benefit Entitlement Rules On The Duration Of Unemployment," CEPR Discussion Papers 2451, C.E.P.R. Discussion Papers.
    7. Calmfors, Lars & Forslund, Anders & Hemström, Maria, 2002. "Does Active Labour Market Policy Work? Lessons from the Swedish Experiences," Seminar Papers 700, Stockholm University, Institute for International Economic Studies.
    8. Holmlund, Bertil & Linden, Johan, 1993. "Job matching, temporary public employment, and equilibrium unemployment," Journal of Public Economics, Elsevier, vol. 51(3), pages 329-343, July.
    9. Tito Boeri, 1994. ""Transitional" unemployment," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(1), pages 1-25, March.
    10. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 409-448, October.
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    Cited by:

    1. 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.
    2. Eleni VANGJELI & Sonela STILLO & Marinela TENEQEXHI, 2012. "Impact of Active Labor Market Programs on Employment: Albania’s Case," Journal of Knowledge Management, Economics and Information Technology,, vol. 2(1), pages 1-16, February.

    More about this item

    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
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy


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