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Effects of Active Labor Market Programs on the Transition Rate from Unemployment into Regular Jobs in the Slovak Republic,☆☆

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Abstract

Lubyova, Martina, and van Ours, Jan C.—Effects of Active Labor Market Programs on the Transition Rate from Unemployment into Regular Jobs in the Slovak Republic

The system of active labor market policies (ALMP) in the Slovak Republic consists, to a large extent, in the creation of socially purposeful and publicly useful jobs and in retraining unemployed workers. The effects of these types of active labor market policies are analyzed. This paper uses a unique administrative data from 20 Slovak districts to analyze to what extent it is beneficial for unemployed workers who want a regular job to accept a temporary ALMP job or enter a retraining program. We find that, indeed, it is beneficial for workers to do so.J. Comp. Econom.,March 1999, 27(1), pp. 90–112. Slovak Academy of Sciences, Sancova 56, 813 64 Bratislava, Slovak Republic, Tinbergen Institute, and CERGE-EI, Charles University, 111 21 Prague 1, Czech Republic, and CentER for Economic Research, Tilburg University, 5000 LE Tilburg, The Netherlands, William Davidson Institute, and CEPR

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We are grateful for the financial support from the Volkswagen Foundation (Van Ours) and Phare Ace Programme of the European Commission (Lubyova). We benefited from comments by Tito Boeri, Hartmut Lehmann, Bas van der Klaauw, and the participants of the workshop “Labour Market Policies in Transition Countries: Monitoring and Evaluation” at Trinity College in Dublin, June 1998.

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David, M. G. Newbery

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