Evaluating Active Labor Markets in Romania

Abstract

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 follow-up survey data and propensity score matching, we find that three programs (training and retraining, self-employment 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.Active labour market programs, propensity score matching, transition economies, and net social benefits