| Abstract [eng] |
The aim of this master thesis is to measure the impact of one of the active labour market policy (ALMP) measures – training for unemployed. The impact of different occupation training for unemployed people with different human capital was measured. EU Member States implement ALMP measures in order to get unemployed people back to the labour market. In 2014 Lithuania spent more than 40 million euros sending almost 60 thousand people to ALMP measures. The analyses of impact of training for unemployed with different human capital in other countries found very different results. Some studies concluded that training has a better impact for unemployed people with low human capital. Other studies found that training has a better impact for unemployed people with high human capital. No studies about the effects of different occupation training for unemployed were found. Human capital theory was chosen as a theoretical background for this master thesis. The hypothesis was based on the theory of Carneiro, Dearden and Vignoles that training and experience in the past is important for the success of further training. This theoretical background and studies measuring effects of unemployed have led to two hypotheses: H1: Higher level occupation training will have the best impact for unemployed people with higher human capital. H2: Lower level occupation training will have the best impact for unemployed people with lower human capital. The hypothesis was checked using counterfactual impact evaluation methods. Specifically, propensity score matching and difference in difference methods were used. The data covered 7394 unemployed people, who were trained by the labour exchange from 2008 to 2011. This data was provided by the Public Policy and Management Institute. The results of this study found that training has the highest negative impact for unemployed people with higher education. A negative impact for such unemployed people was observed for all types of analysed training. In addition, this master thesis found some evidence that unemployed people with secondary education benefit from higher level occupations training. Finally, the service and sales worker occupation training has a positive impact for unemployed people. This impact is the highest among people with basic or lower education attainment. In conclusion, the results of this master thesis allowed to reject the first hypothesis and partially accept the second hypothesis. The results of this master thesis allow providing a recommendation to policy makers. Unemployed people with a higher education should not be sent to training. Instead of training they are better off searching for a job themselves. Also they may be considered for other ALMP measures. In addition, during this study it was observed that the training, which offers a higher qualification occupation than the unemployed people have, in most cases had a positive impact. However, there was not enough evidence and data to support this argument. This requires further study. |
