Wage Employment

Original abstracts from the papers in the database are provided below. All abstracts are drawn directly from the papers referenced. Links to access the papers are provided, although
the papers may also be available from other web sources. By providing links to other sites, the United Nations Foundation and ExxonMobil Foundation do not guarantee, approve, or endorse the information or products available on these sites.

  • Active Labor Market Policies in Poland: Human Capital Enhancement, Stigmatization or Benefit Churning

    Kluve, Lehmann, Schmidt (1998)

    Original abstract:

    This paper provides micro-econometric evidence on the effectiveness of Active Labor Market Policies (ALMP) in Poland. We sketch the theoretical framework of matching estimators as a substitute for randomization in labor market programs. Using retrospective data from the 18th wave of the Polish Labor Force Survey we implement a conditional difference-indifferences matching estimator of treatment effects. Treatment and control groups are matched over individual observable characteristics and pre-treatment labor market histories to minimize bias from unobserved heterogeneity. We also require that observations on controls be from the same regional labor market and from an identical phase of the transition cycle. Considering as the outcome a multinomial variable of labor market status, our first important finding suggests that training of men and women has a positive effect on the employment probability. For men public works and intervention works have negative treatment effects, while participat in in intervention works does not affect women's employment probabilities. We attribute the negative treatment effects for men to benefit churning rather than to stigmatization of intervention and public works participants.

    Intervention settings: Urban

    Intervention description: Three forms of training: publicly financed training and retraining, wage subsidies for workers in private or public firms, and public works. Courses lasted 2-3 months. People receive unemployment benefits during training.

    Methodology: Difference-in-difference matching, where outcome is labor force status. Control group consists of people who had been registered unemployed over same time period.

    Sample: Unemployed workers offered program at their local labor office.

    Findings: Training/program increase average employment probability for women and men over both short and medium term. Non-training ALMP did not have a positive benefit.

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  • Effects of Active Labor Market Programs on the Transition Rate from Unemployment into Regular Jobs in the Slovak Republic

    Lubyova and Ours (1999)

    Original abstract:

    The system of active labor market policies (ALMP) in the Slovak Republic consists to a large extent of the creation of socially purposeful and publicly useful jobs and of retraining of unemployed workers. So far, the effects of these types of active labor market policies have hardly been analyzed. This paper uses a unique administrative data from 20 Slovak districts to analyze to what extent it is beneficial for unemployed workers who want a regular job to accept a temporary ALMP-job or enter a retraining program. We find that indeed it is beneficial for workers to do so.

    Intervention settings: Urban.

    Intervention description: Two ALMP programs providing retraining and counseling services, and wage subsidies at either socially purposeful jobs (up to 2 years) or publicly useful jobs (up to 6 months at public works-type job).

    Methodology: Model the duration of unemployment and duration of stay in an ALMP program.

    Sample: Adult unemployed workers.

    Findings: Workers that enter ALMP have a 150% increase in the exit rate into a regular job. Benefits of retraining were only observed for socially purposeful jobs.

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  • The Impact of Training Policies in Latin America and the Caribbean: The Case of Programa Joven

    Aedo and Nunez (2004)

    Original abstract:

    This research evaluates the "Programa Joven", a training program conducted by the Ministerio del Trabajo of Argentina. We adapt and apply a non-experimental evaluation methodology to answer the following questions: Does "Programa Joven" increase the labor income of the trainees? Does "Programa Joven" increase the probability of being employed? And (3) what is the rate of return to dollars spent on the "Programa Joven"? We used Propensity Scores Matching Estimators as our basic methodology to obtain a measure of the impact of the training program. Our choice of this methodological approach was based upon both the theoretical developments in the area of Program Evaluation and the availability of relevant information. We used three different set of data to estimate the Propensity Scores which allowed us to analyze the question on how sensitive Program impact estimates are to different propensity score specifications? This question has not been addressed by the previous literature. Our results indicate first, that Program impact on earnings were statistically significant for young males and adult females. This result was not sensitive to the number of nearest neighbors. Second, the estimated Program impact on employment was statistically significant for adult females only. Again the result was not sensitive to the number of nearest neighbors. Third, impact estimates on earnings and employment for the groups with statistically significant results were not sensitive to the different sources of information used to estimate the propensity scores. This was a surprising result as we expected to observe greater variability in the impact results across different propensity score specifications. Fourth, the cost-benefit exercise conducted suggest that we required at least 9 years of duration of the earnings impact for the Program to have a positive net present value for the groups with statistically significant results.

    Intervention settings: Rural and urban (across 11 regions)

    Intervention description: Provides an average of 200 hours of training over 14-20 weeks (classroom followed by internship), a monetary subsidy for females with children, transportation expenses, medical checkups, books, materials and work clothing.

    Methodology: Cross-sectional propensity score matching using program beneficiaries and eligible non-participants.

    Sample: Young people from poor households with low education levels and little work experience, who were unemployed or inactive.

    Findings: Positive employment impacts for women of 6% at 12 months, and 15% at 18 months. Beneficiary women generate 93% more labor income than their control counterparts. Decrease in measures of occupational segregation. Negative employment impacts for men.

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  • Gender and Racial Discrimination in Hiring: A Pseudo Audit Study for Three Selected Occupations in Metropolitan Lima

    Nopo, Robels, and Saavedra (2007)

    Original abstract:

    In this paper, we adapt the audit studies methodology to analyze gender and racial differences in hiring for a particular segment of the market of three selected occupations in Metropolitan Lima: salespersons, secretaries and (accounting and administrative) assistants. The adapted pseudo-audit study methodology allows us to reduce the room for existence of statistical discrimination. The results suggest the existence of no significant differences in hiring rates for different gender-race groups but some systematic (and significant) differences in the aimed wages of the individuals in their job search processes.

    Intervention settings: Urban

    Intervention description: Provides classroom training and internships lasting three months. Trainees receive stipend during training period, with mothers of young children receiving double stipend. Focus on training females for traditionally male occupations.

    Methodology: Two-stage matching procedure that first selects for each treated a matched control on the basis of similarity in preprogram hourly wages

    Sample: Technicians and professionals from middle and lower classes in Lima; 80% have an above high-school education.

    Findings: Positive employment impacts for women of 6% at 12 months and 15% at 18 months. Negative impacts for men. After 18 months, beneficiary females generate 93% more labor income than their control counterparts. Decrease in measures of occupational segregation.

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  • Medium and Long Run Effects of Nutrition and Child Care: Evaluation of a Community Nursery Programme in Rural Colombia

    Attanasio and Vera-Hernandez (2004)

    Original abstract:

    In this paper we evaluate the effect of a large nutrition programme in rural Colombia on children nutritional status, school achievement and female labour supply. We find that the programme has very large and positive impacts. Dealing with the endogeneity of treatment is crucial, as the poorest children tend to select into the programme. Methods like Propensity Score Matching would even yield negative estimates of the impact of the program. Our results are robust to the use of instruments that do not depend on individual household choices. We also validate our evaluation strategy by considering the effect of the program on pre-intervention variables. Further, we explore the heterogeneity of the impact of the programme. Children from the poorest backgrounds are the ones that benefit the most.

    Intervention settings: Rural.

    Intervention description: Community nurseries where poor children receive food (purchased by government) and chid care from one of the mothers in the community.

    Methodology: Instrumental variables using distance to nearest center as an instrument.

    Sample: Poor households, based on an eligibility score.

    Findings: Increase in probability of women's employment (0.12 to 0.37) and hours worked (by 75/month.) Positive impact on children's height and grades.

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