| Abstract [eng] |
It is essential to estimate the impact of ALDP measures in order to avoid public spending’s waste and to achieve the main goal – keeping society fully employed. A review of studies on the effects of ALMP measures shows that researchers highlight the impact of economic condition and business cycles on ALMP measures. Studies show that ALMP measures have different impact on the unemployed when delivered in different business cycles. This paper analyses whether it is possible to transfer these insights from time perspective to territorial perspective. The problem analyzed in this paper is that if ALMP measures have different impact in different business cycles, it might have different impact in areas which have different economic conditions even though ALMP measures are applied by the same manner despite different economic conditions. The main goal of this paper is to find out whether the insights of business cycles theory about the impact of ALMP measures can be adapted to different territories with different economic conditions. The case of Lithuania is selected and analysed due to the availability of a large data set that is needed to make this kind of assessment. The project “Improving Employability”, which was implemented in 2008–2011, is selected because it implemented both vocational training and subsidized employment. The impact analysis of this project is executed by using a counterfactual analysis and difference in difference method. After conducting the counterfactual evaluation of the impact of ALMP measures, the results showed that one year and two years after the implementation of the project hypothesis of this paper were confirmed. Analysis showed that subsidized employment and vocational training have a greater impact in counties with poorer economic conditions then in counties with better economic conditions. These findings may be relevant to employment policy makers who seek to increase effectiveness of public funds usage. This paper provides valuable information about the effects of ALMP measures in different areas of the country and how the public policy can be improved accordingly. In the future it would be beneficial to analyse the impact of ALMP measures in the long run. Also this study is focused on ALMP measures which was implemented during the crisis and it might have affected the results of these measures. It is equally important to analyse whether the economic upturn in the business cycle would have the same effect on the impact of ALMP measures in different territories as during recession. |
