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A stock-flow matching approach to evaluation of public training program in a high unemployment environment

Author

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  • Jekaterina Dmitrijeva

    (EPEE)

  • Mihails Hazans

    (University of Latvia & BICEPS)

Abstract

Monthly panel (1998-2003) data from regional labor offices in Latvia are used to analyze the matching process in a high unemployment – low labor demand environment and to evaluate the impact of active labor market policy programs on outflows from unemployment. Results suggest that the hiring process is driven by a stock-flow rather than by a traditional matching function: the stock of unemployed at the beginning of the month and flow of vacancies arriving during the month are the key determinants of outflows from unemployment to employment, while stock of vacancies and inflow of unemployed do not play any significant role. We find positive and significant effect of training programs on outflows from unemployment to employment, thus providing strong evidence against recent cuts in training expenditures.

Suggested Citation

  • Jekaterina Dmitrijeva & Mihails Hazans, 2005. "A stock-flow matching approach to evaluation of public training program in a high unemployment environment," Labor and Demography 0506007, EconWPA.
  • Handle: RePEc:wpa:wuwpla:0506007
    Note: Type of Document - pdf; pages: 30. EPEE Working Paper No. 04- 14R
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    References listed on IDEAS

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    1. Burda, Michael & Wyplosz, Charles, 1994. "Gross worker and job flows in Europe," European Economic Review, Elsevier, vol. 38(6), pages 1287-1315, June.
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    Cited by:

    1. Carmen Camacho & Fabio Mariani & Luca Pensieroso, 2017. "Illegal immigration and the shadow economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1050-1080, December.
    2. Andrea Doneschi & Rossana Patron, 2011. "Assessing incentives and risks in training decisions. A methodological note applied to the Uruguayan case," Documentos de Trabajo (working papers) 1511, Department of Economics - dECON.
    3. Muriel Dejemeppe & Catherine Smith & Bruno der Linden, 2015. "Did the Intergenerational Solidarity Pact increase the employment rate of older workers in Belgium? A macro-econometric evaluation," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    4. Klinger, Sabine & Rothe, Thomas, 2010. "The impact of labour market reforms and economic performance on the matching of short-term and long-term unemployed," IAB Discussion Paper 201013, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Ewa Gałecka-Burdziak, 2012. "Labour market matching – the case of Poland," Bank i Kredyt, Narodowy Bank Polski, vol. 43(3), pages 31-46.
    6. Jekaterina Dmitrijeva, 2008. "Does Unemployed Training Increase Individual Employability? Evidence from Latvian Microdata," Documents de recherche 08-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    7. Iva Tomic, 2012. "The Efficiency of the Matching Process: Exploring the Impact of Regional Employment Offices in Croatia," Working Papers 1204, The Institute of Economics, Zagreb.
    8. Joanna Tyrowicz & Tomasz Jeruzalski, 2013. "(In)Efficiency of matching: the case of a post-transition economy," Economic Change and Restructuring, Springer, vol. 46(2), pages 255-275, May.
    9. Wapler, Rüdiger & Werner, Daniel & Wolf, Katja, 2014. "Active labour-market policies in Germany : do regional labour markets benefit?," IAB Discussion Paper 201428, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Jekaterina Dmitrijeva, 2008. "Matching and Labour Market Efficiency across Space and through EU accession: Evidence from Latvia, Estonia and Slovenia," Documents de recherche 08-05, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    11. Iva Tomić, 2014. "Regional matching (in)efficiency on the Croatian labour market," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 64(3), pages 287-312, September.
    12. Catherine SMITH, 2014. "Did the Intergenerational Solidarity Pact increase the employment rate of the elderly in Belgium? A macro-econometric evaluation," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2014009, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    13. Sabine Klinger & Thomas Rothe, 2012. "The Impact of Labour Market Reforms and Economic Performance on the Matching of the Short‐term and the Long‐term Unemployed," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(1), pages 90-114, February.

    More about this item

    Keywords

    stock-flow matching; augmented matching function; labor market policy; training; transition countries;

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • 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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