Impact Evaluation of Vocational Training and Employment Subsidies for the Unemployed in Lithuania
This report on Lithuania is the tenth country study published in a series of reports looking into how policies connect people with jobs. This report is produced in the framework of a project of the OECD with the European Commission which aims to raise the quality of the data collected and their use in the evaluation of the effectiveness of active labour market policies (ALMPs). The report uses rich administrative data from different registers in Lithuania to evaluate the impact of two types of ALMPs: employment subsidies and vocational training for unemployed people. The analysis examines the outcomes of the selected ALMPs beyond just the probability of employment and how different population groups are affected. Finally, the report makes recommendations for improving the effectiveness of Lithuania’s ALMPs and strengthening the capacity of the Lithuanian authorities in conducting ALMP impact evaluations.
Evaluation of employment subsidy programmes administered by the Lithuanian Public Employment Service
This chapter examines the effects of Lithuania’s employment subsidy programmes on a number of labour market outcomes. In addition to outcomes typically examined in impact evaluations, such as employment probability and duration, the analysis examines the effects on wages, occupational mobility and earnings, including earnings net of the direct subsidy costs. It also compares the results obtained by the counterfactual impact evaluation with those of similar studies, both for Lithuania and for other countries. The estimated effects are examined across sub-groups of workers based on their age, gender, skill level and urban or rural location. The chapter concludes by analysing whether employment subsidies lead to subsidised workers replacing unsubsidised ones.
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