Working Paper: CEPR ID: DP1302
Authors: Tito Boeri; Michael C. Burda
Abstract: A common explanation of low unemployment rates in the Czech Republic (CR) is the stance of active labour market policies (ALMPs), in particular the extensive use of ALMP instruments and an effective delivery system. Using a large panel of quarterly data from employment office districts, we estimate the effects of ALMPs on the job matching process in the CR. In so doing, we address potential endogeneity in the provision of resources to district labour offices. We continue to find a small, but statistically significant effect of ALMP expenditures, job creation, and programme intakes on outflows from unemployment into employment.
Keywords: active labour market policies; matching function; Czech Republic
JEL Codes: J63; J64; J68
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| ALMP expenditures (H53) | job creation (J68) |
| ALMP expenditures (H53) | outflows from unemployment into employment (J68) |
| job counseling staffing (J68) | job outflows (J63) |
| ALMP expenditures (H53) | job turnover among the unemployed (J63) |
| SPJs or PUJs (L39) | outflows from unemployment (J65) |
| ALMP expenditures (H53) | displacement of non-participants (J68) |