SOME REMARKS ON THE EFFECTS OF ACTIVE LABOUR MARKET POLICIES IN POST-TRANSITION

Social cohesion is the principal goal behind active labour market policies (ALMPs), including those financed at supra-national level, like the European Social Fund. In this paper we use NUTS4 level data on the local labour market dynamics in an attempt to verify direct and indirect effects of ALMPs. We use data for 2000- 2007 for Poland, while this period comprised both stark increases and reductions in the unemployment rates. Over this time also the financing of ALMPs has been increased considerably, transforming both to higher intensity of ALMPs (wider coverage) and higher extensiveness of these activities (increase in per treatment cost). At the same time, these trends have transmitted into local context with highly heterogeneous composition of instruments used and actual coverage rates and costs. We implement seemingly unrelated regressions (SURE) approach to inquire the effects of ALMPs on inflows and outflows rates among Polish local labour markets.