The relative and overall effectiveness of different ALMPs in reducing unemployment. An analysis using Inverse Probability Weighting-Regression Adjustment

Session

Management, Business and Economics

Description

This paper analyses the relative and overall effectiveness of three active labour market measures implemented in Kosovo: On the Job Training (OJT); Internship Scheme (IS) and Institution and Enterprise Training (IET). This analysis will use two different estimation techniques: Multinomial Probit and Inverse Probability Weighting – Regression Adjustment (IPW-RA). The second estimation technique allows us to extend from the ‘participant vs. non- participant’ analysis of Propensity Score Matching to a multivalued treatment assignment model while utilising an appropriate set of covariates which are available for both treated and control groups. When using observational data ideally the data for the control group should be derived from the same data source. Due to the unavailability of data for a control group from the same data source (UNDP) and in order to assess the overall effectiveness of the active policies, i.e. to assess the effectiveness of each active measure in raising the probability of participants gaining employment compared to that of non-participants, the empirical analysis presented in this study will construct a control group from the Labour Force Survey (LFS) in Kosovo for 2012, the same year as the UNDP data. Therefore the aim of this study is to investigate whether being a participant in one of the three active measures improves the likelihood of gaining employment, and if so gaining an employment contract, compared to being a non-participant.

Keywords:

labour market, unemployment, ALMP, informality

Session Chair

Arta Mulliqi

Session Co-Chair

Amir Imeri

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-96-7

Location

Lipjan, Kosovo

Start Date

31-10-2020 1:30 PM

End Date

31-10-2020 3:00 PM

DOI

10.33107/ubt-ic.2020.338

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Oct 31st, 1:30 PM Oct 31st, 3:00 PM

The relative and overall effectiveness of different ALMPs in reducing unemployment. An analysis using Inverse Probability Weighting-Regression Adjustment

Lipjan, Kosovo

This paper analyses the relative and overall effectiveness of three active labour market measures implemented in Kosovo: On the Job Training (OJT); Internship Scheme (IS) and Institution and Enterprise Training (IET). This analysis will use two different estimation techniques: Multinomial Probit and Inverse Probability Weighting – Regression Adjustment (IPW-RA). The second estimation technique allows us to extend from the ‘participant vs. non- participant’ analysis of Propensity Score Matching to a multivalued treatment assignment model while utilising an appropriate set of covariates which are available for both treated and control groups. When using observational data ideally the data for the control group should be derived from the same data source. Due to the unavailability of data for a control group from the same data source (UNDP) and in order to assess the overall effectiveness of the active policies, i.e. to assess the effectiveness of each active measure in raising the probability of participants gaining employment compared to that of non-participants, the empirical analysis presented in this study will construct a control group from the Labour Force Survey (LFS) in Kosovo for 2012, the same year as the UNDP data. Therefore the aim of this study is to investigate whether being a participant in one of the three active measures improves the likelihood of gaining employment, and if so gaining an employment contract, compared to being a non-participant.