The Impact on Employment of Active Labour Market Policies: An Evaluation of Public Employment Services (PES) in Kosovo

Abstract

Abstract This paper evaluates the effects that Active Labour Market Programmes (ALMPs) as a component of Public Employment Services (PES) in Kosovo, have on their participants. The study focuses on the likelihood of individual employment as a result of the PES measures using microdata from the Labour Force Survey in Kosovo. Under deficiency of estimates on labour market measures effectiveness, the empirical analysis in this paper confirms the positive role of active labour market programmes in Kosovo. Assessments show that groups targeted by employment offices have increased their probability of being employed. Estimation results may suggest that it would be appropriate for the activity of the Employment Offices and in general, of active policies, to grow their influence. However, Employment Offices would need to meet with a greater number of individuals who could benefit from their increased employability and activity in the labour market. Moreover, it is recommended that the active policies are accompanied by other complementary policies while designing an economic environment that provides incentives for job creation.