Evaluating active labor market programs in Romania

Núria Rodríguez-Planas, Benus Jacob

    Research output: Contribution to journalArticleResearchpeer-review

    26 Citations (Scopus)

    Abstract

    Using unusually rich (for transition economies) follow-up survey data and propensity score matching techniques, this paper seeks to increase our knowledge on what active labor market programs (ALMPs) work in South-East European countries by providing estimates of the effects of four ALMPs implemented in Romania in the late 1990 s. We find that three programs (training and retraining, self-employment assistance, and public employment and relocation services) had success in improving participants' economic outcomes. In contrast, public employment was found detrimental for the employment prospects of its participants. Our sensitivity analysis also finds evidence that, in the case of training and retraining, self-employment assistance, and public employment and relocation services, operators "cream off" the most qualified candidates among the unemployed; whereas public employment seems to be used as a regional policy by "bringing work to the workers", that is, creating jobs in high unemployment regions. © Springer-Verlag 2009.
    Original languageEnglish
    Pages (from-to)65-84
    JournalEmpirical Economics
    Volume38
    Issue number1
    DOIs
    Publication statusPublished - 1 Feb 2010

    Keywords

    • Active labor market programs
    • Pre-program employment information
    • Propensity score matching
    • Transition economies

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