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

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 recei...

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Main Authors: Azam, Mehtabul, Ferré, Céline, Ajwad, Mohamed Ihsan
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2012/07/16530330/latvias-public-works-program-mitigate-impact-2008-2010-crisis
http://hdl.handle.net/10986/11999
id okr-10986-11999
recordtype oai_dc
spelling okr-10986-119992021-04-23T14:02:58Z Did Latvia's Public Works Program Mitigate the Impact of the 2008-2010 Crisis? Azam, Mehtabul Ferré, Céline Ajwad, Mohamed Ihsan ACCOUNTING ACTIVE EMPLOYMENT ACTIVE LABOUR ACTIVE LABOUR MARKET AGGREGATE INCOME ANTI-POVERTY PROGRAM ASSISTANCE PROGRAMS BENEFICIARIES BENEFICIARY CONTROL GROUPS COPING STRATEGIES COUNTERFACTUAL COUNTERFACTUAL OUTCOME COVARIATE SHOCKS DEVELOPMENT ECONOMICS ECONOMIC GROWTH EDUCATIONAL ATTAINMENT EMPLOYABILITY EMPLOYMENT MEASURE EMPLOYMENT OPPORTUNITIES EMPLOYMENT STATUS ENVIRONMENTAL CLEAN-UP FAMILY BENEFIT FINANCIAL CRISIS FINANCIAL SUPPORT GROSS WAGE HIGH UNEMPLOYMENT HIGH UNEMPLOYMENT RATES HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD WELFARE HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INCOME IMPACTS INTERVENTION JOB LOSS JOB LOSSES LABOR DEMAND LABOR FORCE LABOR INTENSITY LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKET IMPACT LABOR-INTENSIVE WORKS LABOUR LABOUR MARKET LAYOFFS LEAKAGE OF BENEFITS MACROECONOMIC CRISIS MATCHING METHODS MINIMUM INCOME NATURAL DISASTER NET JOB CREATION PENSION PER CAPITA INCOME POLITICAL SUPPORT POOR POVERTY LINE POVERTY RATES PRODUCTIVE ACTIVITIES PROGRAM CONDITIONAL PROGRAM EVALUATION PROGRAM IMPACTS PUBLIC INFRASTRUCTURE PUBLIC WORK PUBLIC WORKS PUBLIC WORKS PROGRAM PUBLIC WORKS PROGRAMS PUBLIC WORKS PROJECTS PUBLIC-WORKS PUBLIC-WORKS EMPLOYMENT RISING UNEMPLOYMENT RISING UNEMPLOYMENT RATES SAFETY SAFETY NET SAFETY NETS SAMPLE SIZE SCHOOL MEALS SEASONAL LABOR SELECTION BIAS SICKNESS BENEFIT SOCIAL ASSISTANCE SOCIAL COHESION SOCIAL FUND SOCIAL PROTECTION SOCIAL SAFETY NET SOCIAL SECURITY SOCIAL SERVICES SOCIAL TRANSFERS SOCIAL WELFARE TARGETING TECHNICAL ASSISTANCE TEMPORARY EMPLOYMENT TEMPORARY JOB TEMPORARY JOBS TRAINING COMPONENT TRANSFER BENEFITS TREATMENT EFFECTS UNEMPLOYED UNEMPLOYED PEOPLE UNEMPLOYED PERSONS UNEMPLOYED POPULATION UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT BENEFIT UNEMPLOYMENT BENEFITS UNEMPLOYMENT INSURANCE UNEMPLOYMENT INSURANCE FUND UNEMPLOYMENT RATE UNEMPLOYMENT RATES VULNERABLE HOUSEHOLDS VULNERABLE PEOPLE WORK PROGRAM WORK REQUIREMENT WORKER WORKERS WORKFARE WORKS PROGRAM WORKS PROJECTS 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. 2012-12-21T19:31:40Z 2012-12-21T19:31:40Z 2012-07 http://documents.worldbank.org/curated/en/2012/07/16530330/latvias-public-works-program-mitigate-impact-2008-2010-crisis http://hdl.handle.net/10986/11999 English en_US Policy Research working paper;no. 6144 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Latvia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTING
ACTIVE EMPLOYMENT
ACTIVE LABOUR
ACTIVE LABOUR MARKET
AGGREGATE INCOME
ANTI-POVERTY PROGRAM
ASSISTANCE PROGRAMS
BENEFICIARIES
BENEFICIARY
CONTROL GROUPS
COPING STRATEGIES
COUNTERFACTUAL
COUNTERFACTUAL OUTCOME
COVARIATE SHOCKS
DEVELOPMENT ECONOMICS
ECONOMIC GROWTH
EDUCATIONAL ATTAINMENT
EMPLOYABILITY
EMPLOYMENT MEASURE
EMPLOYMENT OPPORTUNITIES
EMPLOYMENT STATUS
ENVIRONMENTAL CLEAN-UP
FAMILY BENEFIT
FINANCIAL CRISIS
FINANCIAL SUPPORT
GROSS WAGE
HIGH UNEMPLOYMENT
HIGH UNEMPLOYMENT RATES
HOUSEHOLD INCOME
HOUSEHOLD INCOMES
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD WELFARE
HUMAN DEVELOPMENT
INCOME
INCOME DISTRIBUTION
INCOME IMPACTS
INTERVENTION
JOB LOSS
JOB LOSSES
LABOR DEMAND
LABOR FORCE
LABOR INTENSITY
LABOR MARKET
LABOR MARKET CONDITIONS
LABOR MARKET IMPACT
LABOR-INTENSIVE WORKS
LABOUR
LABOUR MARKET
LAYOFFS
LEAKAGE OF BENEFITS
MACROECONOMIC CRISIS
MATCHING METHODS
MINIMUM INCOME
NATURAL DISASTER
NET JOB CREATION
PENSION
PER CAPITA INCOME
POLITICAL SUPPORT
POOR
POVERTY LINE
POVERTY RATES
PRODUCTIVE ACTIVITIES
PROGRAM CONDITIONAL
PROGRAM EVALUATION
PROGRAM IMPACTS
PUBLIC INFRASTRUCTURE
PUBLIC WORK
PUBLIC WORKS
PUBLIC WORKS PROGRAM
PUBLIC WORKS PROGRAMS
PUBLIC WORKS PROJECTS
PUBLIC-WORKS
PUBLIC-WORKS EMPLOYMENT
RISING UNEMPLOYMENT
RISING UNEMPLOYMENT RATES
SAFETY
SAFETY NET
SAFETY NETS
SAMPLE SIZE
SCHOOL MEALS
SEASONAL LABOR
SELECTION BIAS
SICKNESS BENEFIT
SOCIAL ASSISTANCE
SOCIAL COHESION
SOCIAL FUND
SOCIAL PROTECTION
SOCIAL SAFETY NET
SOCIAL SECURITY
SOCIAL SERVICES
SOCIAL TRANSFERS
SOCIAL WELFARE
TARGETING
TECHNICAL ASSISTANCE
TEMPORARY EMPLOYMENT
TEMPORARY JOB
TEMPORARY JOBS
TRAINING COMPONENT
TRANSFER BENEFITS
TREATMENT EFFECTS
UNEMPLOYED
UNEMPLOYED PEOPLE
UNEMPLOYED PERSONS
UNEMPLOYED POPULATION
UNEMPLOYED WORKERS
UNEMPLOYMENT
UNEMPLOYMENT BENEFIT
UNEMPLOYMENT BENEFITS
UNEMPLOYMENT INSURANCE
UNEMPLOYMENT INSURANCE FUND
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
VULNERABLE HOUSEHOLDS
VULNERABLE PEOPLE
WORK PROGRAM
WORK REQUIREMENT
WORKER
WORKERS
WORKFARE
WORKS PROGRAM
WORKS PROJECTS
spellingShingle ACCOUNTING
ACTIVE EMPLOYMENT
ACTIVE LABOUR
ACTIVE LABOUR MARKET
AGGREGATE INCOME
ANTI-POVERTY PROGRAM
ASSISTANCE PROGRAMS
BENEFICIARIES
BENEFICIARY
CONTROL GROUPS
COPING STRATEGIES
COUNTERFACTUAL
COUNTERFACTUAL OUTCOME
COVARIATE SHOCKS
DEVELOPMENT ECONOMICS
ECONOMIC GROWTH
EDUCATIONAL ATTAINMENT
EMPLOYABILITY
EMPLOYMENT MEASURE
EMPLOYMENT OPPORTUNITIES
EMPLOYMENT STATUS
ENVIRONMENTAL CLEAN-UP
FAMILY BENEFIT
FINANCIAL CRISIS
FINANCIAL SUPPORT
GROSS WAGE
HIGH UNEMPLOYMENT
HIGH UNEMPLOYMENT RATES
HOUSEHOLD INCOME
HOUSEHOLD INCOMES
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD WELFARE
HUMAN DEVELOPMENT
INCOME
INCOME DISTRIBUTION
INCOME IMPACTS
INTERVENTION
JOB LOSS
JOB LOSSES
LABOR DEMAND
LABOR FORCE
LABOR INTENSITY
LABOR MARKET
LABOR MARKET CONDITIONS
LABOR MARKET IMPACT
LABOR-INTENSIVE WORKS
LABOUR
LABOUR MARKET
LAYOFFS
LEAKAGE OF BENEFITS
MACROECONOMIC CRISIS
MATCHING METHODS
MINIMUM INCOME
NATURAL DISASTER
NET JOB CREATION
PENSION
PER CAPITA INCOME
POLITICAL SUPPORT
POOR
POVERTY LINE
POVERTY RATES
PRODUCTIVE ACTIVITIES
PROGRAM CONDITIONAL
PROGRAM EVALUATION
PROGRAM IMPACTS
PUBLIC INFRASTRUCTURE
PUBLIC WORK
PUBLIC WORKS
PUBLIC WORKS PROGRAM
PUBLIC WORKS PROGRAMS
PUBLIC WORKS PROJECTS
PUBLIC-WORKS
PUBLIC-WORKS EMPLOYMENT
RISING UNEMPLOYMENT
RISING UNEMPLOYMENT RATES
SAFETY
SAFETY NET
SAFETY NETS
SAMPLE SIZE
SCHOOL MEALS
SEASONAL LABOR
SELECTION BIAS
SICKNESS BENEFIT
SOCIAL ASSISTANCE
SOCIAL COHESION
SOCIAL FUND
SOCIAL PROTECTION
SOCIAL SAFETY NET
SOCIAL SECURITY
SOCIAL SERVICES
SOCIAL TRANSFERS
SOCIAL WELFARE
TARGETING
TECHNICAL ASSISTANCE
TEMPORARY EMPLOYMENT
TEMPORARY JOB
TEMPORARY JOBS
TRAINING COMPONENT
TRANSFER BENEFITS
TREATMENT EFFECTS
UNEMPLOYED
UNEMPLOYED PEOPLE
UNEMPLOYED PERSONS
UNEMPLOYED POPULATION
UNEMPLOYED WORKERS
UNEMPLOYMENT
UNEMPLOYMENT BENEFIT
UNEMPLOYMENT BENEFITS
UNEMPLOYMENT INSURANCE
UNEMPLOYMENT INSURANCE FUND
UNEMPLOYMENT RATE
UNEMPLOYMENT RATES
VULNERABLE HOUSEHOLDS
VULNERABLE PEOPLE
WORK PROGRAM
WORK REQUIREMENT
WORKER
WORKERS
WORKFARE
WORKS PROGRAM
WORKS PROJECTS
Azam, Mehtabul
Ferré, Céline
Ajwad, Mohamed Ihsan
Did Latvia's Public Works Program Mitigate the Impact of the 2008-2010 Crisis?
geographic_facet Europe and Central Asia
Latvia
relation Policy Research working paper;no. 6144
description 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.
format Publications & Research :: Policy Research Working Paper
author Azam, Mehtabul
Ferré, Céline
Ajwad, Mohamed Ihsan
author_facet Azam, Mehtabul
Ferré, Céline
Ajwad, Mohamed Ihsan
author_sort Azam, Mehtabul
title Did Latvia's Public Works Program Mitigate the Impact of the 2008-2010 Crisis?
title_short Did Latvia's Public Works Program Mitigate the Impact of the 2008-2010 Crisis?
title_full Did Latvia's Public Works Program Mitigate the Impact of the 2008-2010 Crisis?
title_fullStr Did Latvia's Public Works Program Mitigate the Impact of the 2008-2010 Crisis?
title_full_unstemmed Did Latvia's Public Works Program Mitigate the Impact of the 2008-2010 Crisis?
title_sort did latvia's public works program mitigate the impact of the 2008-2010 crisis?
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2012/07/16530330/latvias-public-works-program-mitigate-impact-2008-2010-crisis
http://hdl.handle.net/10986/11999
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