Vocational training and employability: Evaluation evidence from Romania

This study evaluates the direct effects of vocational training, which is a popular active labour market policy in a European developing country such as Romania. Since the available official statistical microdata were insufficient to conduct reliable impact evaluations, the main findings were obtained through a counterfactual impact evaluation using newly produced micro survey data. Moreover, the research provides a heterogeneity analysis of groups of trainees, in order to identify the categories for which the programme performs best. The main results reveal that the training measure has a positive, but modest impact upon employability in Romania: participation increases employment chances properly controlled by 15%. It is most successful for women and for people living in urban areas. Measures for increasing the impacts of the vocational training programme in Romania are identified in terms of better targeting and profiling the trainees and closer adjustment of the programme to the specific needs of the labour market.