Active labour market policy and its regional effects in the Czech Republic

Active labour market policy is a widely used labour market intervention, which should increase the efficiency of labour market and help increase regular employment. However, its real impacts on labour market conditions are ambiguous. Although the literature concerning effectiveness of active labour market policy (ALMP) measures is extensive, there is no conclusive evidence regarding which ALMP measures are efficient and to what extent. The effectiveness of active labour market policy depends on many circumstances including characteristics of a given measure and conditions on a given labour market. Therefore, decisions regarding implementation of ALMP measures should be based on high-quality and systematic evaluation of impacts of these measures in the given labour market. In the Czech Republic there is no regular system of active labour market policy evaluation, but the need of evaluation is even more serious in the current economic crisis. The thesis offers both theoretical and empirical analysis of the active labour market policy effectiveness. Theoretical analysis introduces a comprehensive labour market model, which results from findings of existing literature and enables us to identify macroeconomic effects of ALMP measures on aggregate labour market situation. Second part of this thesis introduces an..