A Stock-Flow Matching Approach to Evaluation of Public Training Program in a High Unemployment Environment

35 Pages Posted: 7 Jun 2005

See all articles by Jekaterina Dmitrijeva

Jekaterina Dmitrijeva

Université d'Évry - Centre D'Etudes des Politiques Economiques et de L'Emploi (EPEE)

Mihails Hazans

University of Latvia; IZA; GLO; BICEPS

Abstract

Monthly panel (1998-2003) data from regional labor offices in Latvia are used to analyze the matching process in a high unemployment - low labor demand environment and to evaluate the impact of active labor market policy programs on outflows from unemployment.

Results suggest that the hiring process is driven by a stock-flow rather than by a traditional matching function: the stock of unemployed at the beginning of the month and flow of vacancies arriving during the month are the key determinants of outflows from unemployment to employment, while stock of vacancies and inflow of unemployed do not play any significant role.

We find positive and significant effect of training programs on outflows from unemployment to employment, thus providing strong evidence against recent cuts in training expenditures.

Keywords: Stock-flow matching, augmented matching function, heterogeneous workers, training, transition

JEL Classification: J41, J64, J68

Suggested Citation

Dmitrijeva, Jekaterina and Hazans, Mihails, A Stock-Flow Matching Approach to Evaluation of Public Training Program in a High Unemployment Environment. Labour: Review of Labour Economics and Industrial Relations, Forthcoming, Available at SSRN: https://ssrn.com/abstract=893066

Jekaterina Dmitrijeva (Contact Author)

Université d'Évry - Centre D'Etudes des Politiques Economiques et de L'Emploi (EPEE) ( email )

Boulevard Francois Mitterrand
F-91025 Evry Cedex
France

Mihails Hazans

University of Latvia ( email )

Aspazijas blvd 5
Riga, LV-1586
Latvia

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/profile?key=1142

GLO ( email )

Collogne
Germany

HOME PAGE: http://https://glabor.org/user/mihailshazans/

BICEPS ( email )

Alberta str. 13
Riga, LV 1010
Latvia

HOME PAGE: http://https://www.biceps.org/en/people.html?people_a=1&people_id=44

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