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

Autori
Tomić, Iva ; Žilić, Ivan

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, neobjavljeni rad, znanstveni

Skup
32nd annual Conference of the European society for population economics (ESPE) 2018

Mjesto i datum
Antwerpen, Belgija, 25.06.2018. - 27.06.2018

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
traineeship reform ; evaluation ; labor market outcomes ; youth unemployment

Sažetak
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.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

Napomena
Presenter: Iva Tomić

POVEZANOST RADA