The Impact of Active Labour Market Policies: A Closer Look at the Czech and Slovak Republics

Michael Burda and Martina Lubyová

No 1102, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper investigates the impact of active labour market policies (ALMPs) in the Czech Republic and Slovakia over the period 1991-4. Econometric results suggest that levels of these policies - including a dramatic reduction of ALMP spending in Slovakia by more than two-thirds in 1993 - contributed to the divergence in labour market outcomes in the two countries. All other things equal, raising average Slovak district ALMP spending in 1993 to 1992 levels would have been associated with at least a 30% increase in monthly outflows out of unemployment into jobs. While aggregate ALMPs are positively associated with aggregate vacancies, cross-sectional correlation at the district level is negative in the Czech Republic, suggesting a degree of local responsiveness which is less evident in Slovakia.

Keywords: Active Labour Market Policies; Czech and Slovak Republics; Matching Function; Unemployment (search for similar items in EconPapers)
JEL-codes: E24 J68 P52 (search for similar items in EconPapers)
Date: 1995-02
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Citations: View citations in EconPapers (37)

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