Madalina Ecaterina Popescu

The Net Impact of Training Measures from Active Labour Market Programs in Romania – Subjective and Objective Evaluation

Abstract In this paper we focus on both subjective and objective evaluation of the net impact of training measures in Romania based on beneficiaries’ opinion on the usefulness of the measure and on a propensity score matching approach. For that, micro-data for both the treatment group and the control group were collected through a survey elaborated on 641 respondents by the National Scientific Research Institute for Labour and Social Protection in October 2014. The propensity score matching technique was applied in order to evaluate the effects of the training programs on employment in Romania on two time dimensions, namely both at the end of the training labour market policy in 2013 and also at the end of the survey analysis in October 2014. In both cases the results indicate a slightly negative net impact on employment, suggesting that an unemployed attending a training program has less chances to find a job than someone similar in characteristics, but who did not apply for a training program. The subjective evaluation was done by measuring the opinion of the training services beneficiaries related to the measures usefulness in finding a job. These results are to some extent surprising, but could imply that the labour market policy implemented in Romania should more rigorously identify and target the unemployed segment it addresses in order to improve its efficiency.

Labour Market Analysis in the Central and Eastern European Countries

Over the last twenty years, Central and Eastern European countries (CEE) experienced a specific pattern of economic and social evolution. In the post-communism period these countries have initiated a comprehensive process of catching-up the capitalist economies. This process involved a series of institutional reforms and the liberalization and integration of some important markets (capital market, labor market, etc.). In these circumstances, the actual economic crisis represented a major challenge for these economies, which moreover were quite affected and the recovery is slow. For the purpose of the statistic data analysis, we decided to form two groups of countries, based on their history, background and recent development. We first made an analysis of the evolution of macroeconomic indicators to see how economic policy measures were favourable overcoming the crisis for each country. Using a panel date model, we aim to illustrate the influence of some important macroeconomics indicators (unemployment rate, GDP, FDI) on the labour market (real average net earnings, employment rate). The econometric results revealed that the GDP and FDI have a positive influence upon the two dependent variables, reflecting a normal economic situation.

Vocational training and employability: Evaluation evidence from Romania

This study evaluates the direct effects of vocational training, which is a popular active labour market policy in a European developing country such as Romania. Since the available official statistical microdata were insufficient to conduct reliable impact evaluations, the main findings were obtained through a counterfactual impact evaluation using newly produced micro survey data. Moreover, the research provides a heterogeneity analysis of groups of trainees, in order to identify the categories for which the programme performs best. The main results reveal that the training measure has a positive, but modest impact upon employability in Romania: participation increases employment chances properly controlled by 15%. It is most successful for women and for people living in urban areas. Measures for increasing the impacts of the vocational training programme in Romania are identified in terms of better targeting and profiling the trainees and closer adjustment of the programme to the specific needs of the labour market.

Determinants of Undeclared Work in the EU Member States

Abstract In the context of European economic recovery, undeclared work has become a true challenge for the labour market policies, mainly because it affects tax revenue, social security and labour standards. Without better understanding of the main determinants of undeclared work, little can be done to prevent it. Having these in mind and based on the Eurobarometer survey, the paper aims to find the main factors that trigger undeclared work. Our findings suggest that after the economic crisis, the trust in national authorities has dropped and generated more undeclared payments, especially for the case of small and medium firms.

Prediction Models for High Versus Less Performant Economies in the European Union

In the current unstable economic environment the European Union countries seem to be facing real challenges that distinctly affect their economic performances. Although there are several attempts in the international literature in building efficient macroeconomic prediction models, the subject still remains of great relevance and it is mostly believed that automated correction in any decision process should be based on proper prediction models.

Labour Tax Effects on Labour Market Outcomes in the European Union

In the context of a global economy, tax systems play a decisive role in the mobility of production factors. Thus, the importance of labour tax reform in the integrated economic systems, like the European Union, is given by the fact that in recent years the European labour market faced high unemployment rates, despite the high priority given to this issue by the European Commission and national governments. In these circumstances, one widely recommended measure in the E.U. is to improve labour taxation, especially as the European Union is still an area of high tax burden on labour compared to other developed economies.

An Assessment of Enhanced Competitiveness through Fiscal Devaluation

Abstract The purpose of this paper is to determine whether fiscal devaluation can represent a solution for increased competitiveness, as one of the most important issues highlighted by the sovereign debt crises, which needs to be properly addressed, is low competitiveness of Southern Euro Area member states. These countries registered high internal and external imbalances that could not be reduced through monetary devaluation. Within this context, fiscal policy instruments represent the core elements for growth, competitiveness and stability. Although, especially during the last years, fiscal policy changes were implemented having as an important objective the decrease of budgetary deficits and public debts, the influence is much more significant. Taxation can also be used to resolve important issues as low competitiveness. In this respect, we determine the effects of fiscal devaluation on the current account balance by applying panel data analysis on data for all European Union member states, as the principle can be useful for all countries, and conclude on the use of fiscal devaluation as solution for enhancing competitiveness.