Evaluating Latvia's Active Labour Market Policies

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This report on Latvia is the fifth country study published in a series of reports looking into how policies connect people with jobs. It focuses on Latvia's long-term unemployed and those at risk of long-term unemployment. The report analyses linked administrative microdata to evaluate quantitatively the impact of activation policies elaborated in Latvia’s Inclusive Employment Strategy 2015-2020. More specifically, it assesses the effectiveness of training measures, employment subsidies and a programme promoting regional mobility. This report derives policy lessons from the empirical results to help the Latvian authorities adjust the activation strategies and measures in order to strengthen labour market participation of the unemployed and improve their labour market outcomes, helping them move into more productive and better quality jobs.

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Latvian labour market policies for skills and employability

Training for the unemployed has remained a key component of active labour market policy in Latvia. This chapter assesses how effective such trainings have been in helping unemployed people access good jobs and considers how training provision could be improved using detailed, linked administrative data. The chapter finds that training for the unemployed has had positive effects on individuals’ chances of (re-)entering employment and on earnings among those who found a job. While these effects differed according to the gender, age, and social assistance receipts of training participants, virtually all types of participants benefited from taking part in training for the unemployed. In addition, combining training with other active labour market policy measures, especially measures to support regional mobility, appeared to boost effectiveness. On implementation, the chapter directly considers the implications of providing training for the unemployed through a voucher system.




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