Evaluating Active Labor Market Programs in Romania
38 Pages Posted: 5 Dec 2006
Date Written: November 2006
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.
Keywords: active labour market programs, propensity score matching, transition economies, net social benefits
JEL Classification: J68
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