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Empirical Economics

, Volume 38, Issue 1, pp 65–84 | Cite as

Evaluating active labor market programs in Romania

  • Núria Rodríguez-PlanasEmail author
  • Benus Jacob
Original Paper

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.

Keywords

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

JEL Classification

J21 J31 J64 J65 J68 

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Supplementary material

181_2009_256_MOESM1_ESM.doc (152 kb)
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Copyright information

© Springer-Verlag 2009

Authors and Affiliations

  1. 1.Departament d’Economia i Història EconòmicaUniversitat Autònoma de BarcelonaBellaterraSpain
  2. 2.IMPAQ International LLCColumbiaUSA

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