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

Intro -- Foreword -- Acknowledgements -- Executive summary -- 1 Assessment and recommendations -- 1.1. Lithuania should continue to strengthen its system of active labour market policies -- 1.1.1. Lithuania has seen strong employment growth over the past decade but challenges remain -- 1.1.2. A recent reform helped improve the institutional set-up and reach of active labour market policy provision -- 1.1.3. Lithuania spends relatively little in ALMPs, which do not adequately respond to needs -- 1.2. Evidence-informed policy making is crucial to improve the system of ALMPs -- 1.2.1. Impact evaluations of ALMPs can help design more effective ALMPs and allocate funding more sustainably -- 1.2.2. Robust evaluation techniques are required to establish whether ALMPs have the intended impact on participants -- 1.2.3. Evaluations should look at outcomes beyond the probability of employment to account for aspects of job quality -- 1.2.4. Lithuania's rich linked administrative data represent an invaluable resource for evaluating the impact of ALMPs -- 1.3. Vocational training and employment subsidies help to connect people with jobs, but could be fine-tuned further -- 1.3.1. Vocational training and employment subsidies are two of the main ALMPs in Lithuania, representing half of the total ALMP budget -- 1.3.2. Younger jobseekers, men and high-skilled jobseekers are more likely to enter the vocational training or employment subsidy programmes -- 1.3.3. Vocational training helps individuals become employed, especially in the short term, without adversely affecting occupational mobility or wages -- 1.3.4. The voucher system for vocational training may partly explain the positive effects -- 1.3.5. Men, older (especially older women), low-skilled and long-term jobseekers gain larger benefits from participating in vocational training.

1.3.6. Employment effects of vocational training are stronger when there is a tripartite agreement between jobseekers, the LES and employers -- 1.3.7. The positive results of training suggest that Lithuania should invest more in this measure and find solutions to increase access to it -- 1.3.8. Subsidies have significant positive effects on labour market outcomes -- 1.3.9. Employment subsidies have positive effects across the different groups of beneficiaries, although the channels and magnitudes of these effects vary -- 1.3.10. Subsidised jobs are not replacing unsubsidised jobs -- 1.3.11. ALMP targeting could be improved -- 2 Recent trends in the Lithuanian labour market and active labour market policies -- 2.1. Introduction -- 2.2. Labour market situation and trends in Lithuania -- 2.2.1. Strong employment growth characterised the Lithuanian labour market over the past decade -- 2.2.2. Large labour market disparities still exist between different groups of population -- 2.3. The system of active labour market policies in Lithuania -- 2.3.1. The institutional set-up of ALMP provision has improved -- 2.3.2. The package of ALMPs has been revised, but positive changes are not yet visible -- 2.3.3. Lithuania needs to strengthen its system of ALMP monitoring and evaluation to attract sufficient and sustainable funding for ALMPS that are effective -- References -- Note -- 3 Counterfactual impact evaluation approach and outcomes examined -- 3.1. Introduction -- 3.2. Vocational training and employment subsidy programmes are two of the main ALMPs in Lithuania -- 3.3. Counsellors' discretion plays a role in targeting ALMPs -- 3.4. People closer to the labour market are more likely to get support, particularly vocational training -- 3.5. The rich administrative data provide a detailed information on unemployed individuals and their labour market outcomes.

3.6. The impact evaluation methodology accounts for counterfactual outcomes -- 3.7. A rich set of labour market outcomes are evaluated -- 3.8. Looking beyond employment prospects to analyse occupational mobility -- References -- Notes -- 4 Evaluation of vocational training provided by the Lithuanian Public Employment Service -- 4.1. Introduction -- 4.2. The vocational training programme has a positive effect on most outcomes examined -- 4.2.1. Vocational training has positive effects particularly in the short term, but also in the long term -- 4.2.2. Lithuania's training programmes' effects on employment probability compare favourably with estimates from other studies, particularly in the short term -- 4.3. The impacts vary across sub-groups of unemployed people and depend on characteristics of training provided -- 4.3.1. Certain sub-groups of jobseekers especially benefit from vocational training -- 4.3.2. Heterogeneous effects from other studies show that outcomes can vary considerably across studies and sub-groups -- 4.3.3. Examining the effects of training across vocational training programme parameters shows that tripartite agreements play an especially important role -- References -- Annex 4.A. Additional figures -- Notes -- 5 Evaluation of employment subsidy programmes administered by the Lithuanian Public Employment Service -- 5.1. Introduction -- 5.2. Employment subsidies have positive effects on most outcomes examined -- 5.2.1. Positive effects of employment subsidies decline over time but remain present even after three years -- 5.2.2. The estimated boost to employment probability by Lithuania's employment subsidy programme compare favourably with estimates from other studies in the short term -- 5.3. The effects of employment subsidies vary across sub-groups of unemployed people.

5.3.1. Employment subsidies are more effective for sub-groups such as older workers -- 5.3.2. Heterogeneous effects from other studies show wide variation in effects across sub-groups of jobseekers -- 5.4. Any direct displacement effects of the subsidised employment programme appear to be small -- References -- Annex 5.A. Additional figures -- Notes.

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).

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.