We evaluate the presence of effects from joining one of four active labour market programs in Romania in the late 1990s compared to the no-program state. Using rich follow-up survey data and propensity score matching, we find that three programs (training and retraining, self-employment assistance, and employment and relocation services) had success in improving participants' economic outcomes and were cost-beneficial from society's perspective. In contrast, public employment was found detrimental for the employment prospects of its participants.
Financial support from the Romanian Ministry of Labor and Social Protection, the National Agency for Employment and Vocational Training, the Spanish Ministry of Education and Science (grant SEJ2006-712) and the Generalitat de Catalunya (grant
SGR2005-712) is also gratefully acknowledged.