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Does training increase outflows from unemployment: evidence from Latvian regions

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  • Jekaterina Dmitrijeva
  • Mihails Hazans

Abstract

Monthly panel (1998-2003) data from regional labor offices in Latvia are used to conclude on the specificity of matching process in this transition economy and to evaluate the impact of active labor market policy programs on outflows from unemployment. Results confirm that the hiring process is driven by stock-flow matching rather than by traditional matching function: stock of unemployed at the beginning of the month and vacancies arriving during the month are the key determinants of outflow from unemployment to employment, while stock of vacancies and inflow of unemployed are not significant. In the context of such “correct” specification of the matching process, the policy evaluation is performed. We find positive and very significant effect of training on outflows from unemployment to employment, thus providing some evidence against cuts in training expenditures. Fixed effects estimates allow discriminating between regions in terms of matching efficiency. JEL: J41, J64, J68 Keywords: stock-flow matching, augmented matching function, labour market policy, training

Suggested Citation

  • Jekaterina Dmitrijeva & Mihails Hazans, 2004. "Does training increase outflows from unemployment: evidence from Latvian regions," ERSA conference papers ersa04p360, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa04p360
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    More about this item

    Keywords

    stock-flow matching; augmented matching function; labour market policy; training;
    All these keywords.

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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