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Active labor market policies in Romania and Bulgaria: an empirical examination

John Polimeni and Raluca Iorgulescu

HOLISTICA Journal of Business and Public Administration, 2015, vol. 6, issue 2, 20-31

Abstract: Active labor market policies (ALMPs) have long been used to assist in structural adjustments and to prevent the jobless from getting ensnared in long-term unemployment. ALMPs are often used to help stop the dependency on public transfers, especially in recent years when countries have dealt with a global financial crisis and large public debt. The four main types of ALMPs have different ways of accomplishing the same objectives, chief among those reducing unemployment. As a result, ALMPs are often costly. There are two measures to determine the importance of ALMPs at the macro level: 1) the number of workers in an ALMP program as a share of the labor force; and 2) the public expenditures on ALMPs. This paper will focus on the second measure, public expenditures on ALMPs, to examine the importance of ALMPs in Romania and Bulgaria. The paper concludes with a discussion of the policy issues associated with ALMPs.

Keywords: active labor market policies; unemployment (search for similar items in EconPapers)
JEL-codes: E24 J48 O52 (search for similar items in EconPapers)
Date: 2015
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