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Did Latvia's Public Works Program Mitigate the Impact of the 2008-2010 Crisis?

Author: Mehtabul Azam; Mohamed Ihsan Ajwad; Céline Ferré
Publisher: Washington, D.C. : The World Bank, 2012.
Series: Policy research working papers.; World Bank e-Library.
Edition/Format:   eBook : Document : International government publication : EnglishView all editions and formats
Database:WorldCat
Summary:
To mitigate the impact of the 2008-2010 global financial crisis on vulnerable households, the Government of Latvia established Workplaces with Stipends, an emergency public works program that targeted registered unemployed people who were not receiving unemployment benefits. This paper evaluates the targeting performance and welfare impacts of the program. It exploits the over-subscription of Workplaces with  Read more...
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Additional Physical Format: Print version:
Azam, Mehtabul
Did Latvia's Public Works Program Mitigate the Impact of the 2008-2010 Crisis?
Washington, D.C. : The World Bank, 2012
Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Mehtabul Azam; Mohamed Ihsan Ajwad; Céline Ferré
OCLC Number: 811060022
Description: 1 online resource (32 pages).
Series Title: Policy research working papers.; World Bank e-Library.
Responsibility: Mehtabul Azam.

Abstract:

To mitigate the impact of the 2008-2010 global financial crisis on vulnerable households, the Government of Latvia established Workplaces with Stipends, an emergency public works program that targeted registered unemployed people who were not receiving unemployment benefits. This paper evaluates the targeting performance and welfare impacts of the program. It exploits the over-subscription of Workplaces with Stipends to define a control group. The paper finds that the program was successful at targeting poor and vulnerable people, and that leakage to non-poor households was small. Using propensity score matching, the paper finds that the program's stipend mitigated the impact of job loss and, in the short term, raised participating household incomes by 37 percent relative to similar households not benefiting from the program. The paper also finds that the foregone income for this program was less than foregone incomes estimated in other countries. This suggests a dearth of income-generating opportunities in Latvia; thus the program provided temporary employment opportunities and helped the unemployed mitigate the impact of the crisis. However, relative to the depth of the crisis in Latvia, the Workplaces with Stipends program scale was small, which meant long waiting periods for program applicants.

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