IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/20332.html
   My bibliography  Save this paper

The efficiency analysis applied for the evaluation of labour market policies: Study case for Romania

Author

Listed:
  • Roman, Monica

Abstract

The transition to a market economy started in Romania after 1989 and had significant repercussions on labor market outcomes, in terms of both levels and composition. Labor markets adjusted to the new economic environment by reducing employment and labor force participation, and by increasing unemployment to rates unseen in Romania. The Romanian government soon recognized the urgency of developing social safety programs and labour market programs to help the unemployed during this transition period, but only in the late 1990s a coherent and a large scale program was launched. Since there are important financial resources allotted to this type of spending, it is necessary to evaluate the social benefit they bring. Despite the great interest of this topic, both for scientists and for politicians, there are quite a few studies on Romanian labour market policies. One of the reasons is the unavailability of data and the lack of surveys on labour market policies. The purpose of the paper is to evaluate the efficiency of some public policy measures in Romania, in time periods 2004 and 2005, and thus, to contribute to a better knowledge of Romanian labor market. We present the existing labour market policies in Romania and we focus on the most significant ten interventions. The efficiency analysis in performed using data envelopment analysis (DEA method), that has proven useful in a diverse variety of applications. Due to the rather small number of observed units, we use a small number of inputs and outputs. The inputs are the expenditure and the number of participants registered for each measures. As output we use the percentage of exits to employment in the total number of exits. We conduct the analysis for each year and we use Malmquist index numbers for evaluating the changes in efficiency of LMP in 2005 compared to 2004. The results emphasize that in both years the active measures were more efficient than the passive ones and the Completion of employees’ incomes (I11) was on the efficiency frontier, along with Vocational training (I7). Unemployment indemnity (I2), the measure with the highest value of expenditure, was half efficient compared to those situated on efficiency frontier.

Suggested Citation

  • Roman, Monica, 2008. "The efficiency analysis applied for the evaluation of labour market policies: Study case for Romania," MPRA Paper 20332, University Library of Munich, Germany, revised Nov 2008.
    • Handle: RePEc:pra:mprapa:20332
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/20332/1/MPRA_paper_20332.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zvi Lerman & Pepijn Schreinemachers, 2005. "Individual Farming as a Labour Sink: Evidence from Poland and Russia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 47(4), pages 675-695, December.
    2. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    3. Dar, Amit & Tzannatos, Zafiris, 1999. "Active labor market programs: a review of the evidence from evaluations," Social Protection Discussion Papers and Notes 20116, The World Bank.
    4. Núria Rodríguez-Planas & Benus Jacob, 2010. "Evaluating active labor market programs in Romania," Empirical Economics, Springer, vol. 38(1), pages 65-84, February.
    5. Earle, John S. & Pauna, Catalin, 1996. "Incidence and duration of unemployment in Romania," European Economic Review, Elsevier, vol. 40(3-5), pages 829-837, April.
    6. Karkazis, John & Thanassoulis, Emmanuel, 1998. "Assessing the effectiveness of regional development policies in Northern Greece using data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 32(2), pages 123-137, June.
    7. Ioan Cindrea, 2007. "The Crisis on the Labor Market in Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 4(4(509)), pages 25-28, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jaba, Elisabeta & Balan, Christiana & Roman, Mihai & Roman, Monica, 2010. "Statistical evaluation of spatial concentration of unemployment by gender," MPRA Paper 25161, University Library of Munich, Germany, revised May 2010.
    2. Popescu, Madalina Ecaterina & Roman, Monica, 2018. "Vocational training and employability: Evaluation evidence from Romania," Evaluation and Program Planning, Elsevier, vol. 67(C), pages 38-46.
    3. Jaba, Elisabeta & Balan, Christiana & Roman, Monica & Viorica, Daniela & Roman, Mihai, 2008. "Employment rate prognosis on the basis of the development environment trend displayed by years-clusters," MPRA Paper 20337, University Library of Munich, Germany, revised Sep 2008.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rodríguez-Planas, Núria, 2007. "What Works Best for Getting the Unemployed Back to Work: Employment Services or Small-Business Assistance Programmes? Evidence from Romania," IZA Discussion Papers 3051, Institute of Labor Economics (IZA).
    2. Seema Sharma & V. J. Thomas, 2008. "Inter-country R&D efficiency analysis: An application of data envelopment analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 76(3), pages 483-501, September.
    3. Cui, Qiang & Li, Ye & Wei, Yi-Ming, 2017. "Exploring the impacts of EU ETS on the pollution abatement costs of European airlines: An application of Network Environmental Production Function," Transport Policy, Elsevier, vol. 60(C), pages 131-142.
    4. Martic, Milan & Savic, Gordana, 2001. "An application of DEA for comparative analysis and ranking of regions in Serbia with regards to social-economic development," European Journal of Operational Research, Elsevier, vol. 132(2), pages 343-356, July.
    5. Nuria Rodriguez-Planas† & Jacob Benus, 2007. "Evaluative Active Labor Market Programmes in Romania," Working Papers 2007-31, FEDEA.
    6. Sotirios Dimitriadis & Athanasia Karakitsiou & Olga Mitsopoulou, 2013. "Applying QE-DEA in the evaluation of the Greek public sector: the case of the agencies for aliens and immigration of the Decentralized Administration of Macedonia and Thrace," International Journal of Decision Sciences, Risk and Management, Inderscience Enterprises Ltd, vol. 5(1), pages 88-100.
    7. Roman, Monica & Suciu, Christina, 2012. "Analiza eficienţei activităţii de cercetare dezvoltare inovare prin metoda DEA [The Efficency Analysis Of R&D Activities By Using Dea]," MPRA Paper 44000, University Library of Munich, Germany.
    8. Galanopoulos, Konstantinos & Aggelopoulos, Stamatis & Kamenidou, Irene & Mattas, Konstadinos, 2006. "Assessing the effects of managerial and production practices on the efficiency of commercial pig farming," Agricultural Systems, Elsevier, vol. 88(2-3), pages 125-141, June.
    9. Núria Rodríguez‐Planas, 2010. "Channels through which Public Employment Services and Small Business Assistance Programmes Work," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(4), pages 458-485, August.
    10. Alessio Brown & Johannes Koettl, 2015. "Active labor market programs - employment gain or fiscal drain?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-36, December.
    11. Halkos, George & Tzeremes, Nickolaos, 2011. "Population density and regional welfare efficiency," MPRA Paper 30097, University Library of Munich, Germany.
    12. Vlontzos, G. & Pardalos, P.M., 2017. "Assess and prognosticate green house gas emissions from agricultural production of EU countries, by implementing, DEA Window analysis and artificial neural networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 155-162.
    13. Halkos, George & Tzeremes, Nickolaos, 2008. "Measuring regional public health provision," MPRA Paper 23762, University Library of Munich, Germany.
    14. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min & Lin, Bruce J.Y., 2013. "A survey of DEA applications," Omega, Elsevier, vol. 41(5), pages 893-902.
    15. Núria Rodríguez-Planas & Benus Jacob, 2010. "Evaluating active labor market programs in Romania," Empirical Economics, Springer, vol. 38(1), pages 65-84, February.
    16. Halkos, George & Tzeremes, Nickolaos, 2005. "A DEA approach to regional development," MPRA Paper 3992, University Library of Munich, Germany.
    17. Pettas, Nikolaos & Giannikos, Ioannis, 2014. "Evaluating the delivery performance of public spending programs from an efficiency perspective," Evaluation and Program Planning, Elsevier, vol. 45(C), pages 140-150.
    18. Núria Rodríguez-Planas & Jacob Benus, 2007. "Evaluating Active Labor Markets in Romania," UFAE and IAE Working Papers 699.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    19. George Emmanuel Halkos & Nickolaos Tzeremes, 2010. "Measuring regional economic efficiency: the case of Greek prefectures," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(3), pages 603-632, December.
    20. Amores, Antonio F. & Contreras, Ignacio, 2009. "New approach for the assignment of new European agricultural subsidies using scores from data envelopment analysis: Application to olive-growing farms in Andalusia (Spain)," European Journal of Operational Research, Elsevier, vol. 193(3), pages 718-729, March.

    More about this item

    Keywords

    labour market policy; DEA; efficiency; Transition economy; Romania;
    All these keywords.

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:20332. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.