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Working for 200 euro? The effects of a large- scale traineeship reform on labor market outcomes in Croatia (CROSBI ID 664839)

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Tomić, Iva ; Žilić, Ivan Working for 200 euro? The effects of a large- scale traineeship reform on labor market outcomes in Croatia // 10th workshop on labour economics Trier, Njemačka, 13.04.2018-14.04.2018

Podaci o odgovornosti

Tomić, Iva ; Žilić, Ivan

engleski

Working for 200 euro? The effects of a large- scale traineeship reform on labor market outcomes in Croatia

In this paper we evaluate the effects of a large-scale traineeship reform, the so-called SOR measure (vocational training for work without commencing employment), on labor market outcomes in Croatia. SOR was designed to ease the first labor market entry and promote on- the-job training, enabling a young person without relevant work experience to get a one- year contract and a net monthly salary of 210 euro. The measure soon became popular, especially among university graduates, accounting for around 30% of their unemployment exits. Pooling Croatian Labor Force Surveys from 2007– 2016 and using difference-in- difference strategy we estimate the causal intent-to-treat effect of the reform on labor market outcomes of the eligible group: 18–29 year-olds. The main results indicate that the reform significantly decreased the probability of being unemployed of the treated group, as well as increase their probability of being inactive. We also find an adverse effect on wages—driven mostly by wages received by females and university graduates—and evidence that a portion of individuals was shifted towards the public sector. However, we do not find any effect on the probability of being employed.

ALMP ; evaluation ; labor market outcomes ; traineeship reform ; youth unemployment

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Podaci o prilogu

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Podaci o skupu

10th workshop on labour economics

predavanje

13.04.2018-14.04.2018

Trier, Njemačka

Povezanost rada

Ekonomija