Impact Evaluation of Vocational Training and Employment Subsidies for the Unemployed in Lithuania

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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.


Counterfactual impact evaluation approach and outcomes examined

This chapter discusses the key features of two active labour market measures: vocational training and employment subsidies offered to unemployed people by the public employment service of Lithuania. The chapter includes a description of the characteristics of the individuals and employers who participate in the programmes. It also describes the rich, individual level administrative data that provide the foundation for the empirical analysis and the econometric approach used in the counterfactual impact evaluation of these two measures in the following chapters of this review. In addition to outcomes commonly examined in impact evaluations of active labour market policies, such as employment probabilities, this chapter describes additional outcomes examined, most notably career progression. For the latter, the chapter outlines the construction of an occupational index calculated based on the observed wages of individuals by detailed occupational codes.




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