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A net impact analysis of active labour programmes in Hungary

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  • Christopher J. O'Leary

Abstract

This paper presents estimates of the impact on re‐employment and earnings of the two most popular active labour programmes used during the economic transition in Hungary: retraining and public service employment (PSE). To adjust for non‐random assignment of programme participants, net impacts were computed using matched pair samples and regression models. The evidence suggests retraining may improve the chance for reemployment, is unlikely to improve re‐employment earnings, but may improve job durability. Net societal benefits could be improved by retraining relatively more males, older persons, and those with less education. PSE does not appear to provide a reliable path to a regular non‐subsidized job, and may even lower re‐employment earnings. PSE might best be viewed as an income transfer programme having the collateral benefit of maintaining basic work habits. The net societal impact of PSE could increase if it involved relatively more females and older persons.

Suggested Citation

  • Christopher J. O'Leary, 1997. "A net impact analysis of active labour programmes in Hungary," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 5(2), pages 453-484, November.
    • Handle: RePEc:bla:etrans:v:5:y:1997:i:2:p:453-484
    DOI: 10.1111/j.1468-0351.1997.tb00025.x
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    Cited by:

    1. Vodopivec, Milan, 1999. "Does the Slovenian Public Work Program Increase Participants' Chances to Find a Job?," Journal of Comparative Economics, Elsevier, vol. 27(1), pages 113-130, March.
    2. Mark C. Berger & John S. Earle & Klara Sabirianova, 2001. "Worker Training in a Restructuring Economy: Evidence from the Russian Transition," Book chapters authored by Upjohn Institute researchers, in: Soloman W. Polachek (ed.),Worker Wellbeing in a Changing Labor Market, pages 159-189, W.E. Upjohn Institute for Employment Research.
    3. Gyula Nagy & Peter Galasi, 1999. "Outflows from Insured Unemployment in Hungary, 1992-1996," Budapest Working Papers on the Labour Market 9903, Institute of Economics, Centre for Economic and Regional Studies.

    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

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