The Effectiveness of Active Labour Market Policies in Reducing Unemployment in Kosovo

Session

Management, Business and Economics

Description

This paper investigates the effectiveness of Active Labour Market Policies (ALMP) in Kosovo’s labour market. The main aim of this paper is to evaluate the relative effectiveness of three active measures: On the Job Training (OJT), Internship Scheme (IS) and Institution and Enterprise Training (IET). The estimation techniques used for this empirical investigation are Propensity Score Matching (PSM) and Inverse Probability Weighting – Regression Adjustment (IPWRA). Since there is a range of active programmes in which an individual can participate, the choice of participation should be extended from ‘participation vs. non-participation’ into a multiple choice model (Lechner, 2001). The approach used in this analysis provides information on whether participants of one programme would have performed better if they had participated in another programme. The second estimation technique, IPWRA, allows extending from the ‘participant vs. non-participant’ analysis of PSM to a multivalued treatment assignment model while utilising an appropriate set of covariates which are available for both the treated and control groups. Therefore this paper investigates whether being a participant in one of the three active measures improves the likelihood of gaining employment in general and being engaged in the formal labour market in particular compared to being a non-participant and also compared to the other two programmes.

Keywords:

ALMPs, Unemployment, Informal Labour Market, IPWRA, PSM.

Session Chair

Hasan Metin

Session Co-Chair

Leonita Braha Vokshi

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-550-19-2

Location

Pristina, Kosovo

Start Date

26-10-2019 3:30 PM

End Date

26-10-2019 5:00 PM

DOI

10.33107/ubt-ic.2019.367

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Oct 26th, 3:30 PM Oct 26th, 5:00 PM

The Effectiveness of Active Labour Market Policies in Reducing Unemployment in Kosovo

Pristina, Kosovo

This paper investigates the effectiveness of Active Labour Market Policies (ALMP) in Kosovo’s labour market. The main aim of this paper is to evaluate the relative effectiveness of three active measures: On the Job Training (OJT), Internship Scheme (IS) and Institution and Enterprise Training (IET). The estimation techniques used for this empirical investigation are Propensity Score Matching (PSM) and Inverse Probability Weighting – Regression Adjustment (IPWRA). Since there is a range of active programmes in which an individual can participate, the choice of participation should be extended from ‘participation vs. non-participation’ into a multiple choice model (Lechner, 2001). The approach used in this analysis provides information on whether participants of one programme would have performed better if they had participated in another programme. The second estimation technique, IPWRA, allows extending from the ‘participant vs. non-participant’ analysis of PSM to a multivalued treatment assignment model while utilising an appropriate set of covariates which are available for both the treated and control groups. Therefore this paper investigates whether being a participant in one of the three active measures improves the likelihood of gaining employment in general and being engaged in the formal labour market in particular compared to being a non-participant and also compared to the other two programmes.