In 2014-2015, PPMI in partnership with the Lithuanian Ministry of Social Security and Labour carried out a counterfactual impact evaluation (CIE) of ESF-funded support for the registered unemployed. We analysed administrative data covering 2004-2013 of over 900,000 unemployed persons to estimate the impact of wage subsidies and vocational training on the number of days in employment and income of the participants. The evaluation was financed by the European Commission (DG EMPL) under the call for proposals 'Pilot Projects to carry out ESF related Counterfactual Impact Evaluations (CIEs)'. It aimed to promote a wider use of CIEs when evaluating ESF-funded interventions and to contribute to a better understanding of impact of active labour market policies on the labour market outcomes for the unemployed, especially during the economic downturn.
The evaluation produced robust evidence that wage subsidies had a positive short and medium-term impact on the labour market outcomes (employment, income) of the participants. For example, the unemployed who received wage subsidies were in registered unemployment on average for 44 days less and worked for 62 days more during the first year after the intervention than persons in the control group. The treated individuals also received higher annual as well as daily income. The evaluation also showed that vocational training, on the contrary, had a negative impact on both the employment and the income of the participants and this effect lasted at least for two years after the end of the training. The findings of the evaluation were disseminated at a number of public presentations both to national and international stakeholders.
For more information on this project contact Dovilė Jonavičienė.