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3 (28) 2016

Demography and social economy, 2016, 3(28):186-198
doi: https://doi.org/10.15407/dse2016.03.186

MARSHAVIN Yu.M.

Dr. Sc. (Economics), Prof.
Vadym Hetman Kyiv National Economics University
03680, Kyiv, prosp. Peremogy, 54/1
E-mail: urijmarsh@gmail.com

THEORETICAL AND PRACTICAL PRINCIPLES OF ECONOMIC EFFICIENCY EVALUATION OF ACTIVE LABOR MARKET PROGRAMS
Section: PROBLEMS OF EMPLOYMENT
Language: Ukrainian
Abstract: This article analyzes the problem of promoting employment of unemployed citizens registered with the state employment service through their involvement in active employment programs, including vocational training, public works, startup of their own businesses and others. It has been found that economic efficiency evaluation of these programs is of particular relevance as the Mandatory State Unemployment Insurance Fund of Ukraine suffers from shortage. This allows to select programs which in specific conditions produce better employment results per cost unit. The study developed a technique, which is based on a comparison of financing costs of active employment programs and additional economic gains that arise in further work activities of program participants due to earlier (compared to other unemployed) employment and minimizing the time period of receiving unemployment benefits.
In this regard employment centers should improve selection of the unemployed for participating in the programs, customer service, apply differentiated approach to clients, the so-called profiling. The unemployed should be mainly included in specific programs according to the characteristics of the group they belong to, and economic effectiveness of the program.
The article focuses on the feasibility of the fastest possible involvement of the insufficiently motivated unemployed in these programs provided that there are jobs available either at the moment or they will be in the future. Attention is drawn to the need to ensure not only maximum economic efficiency of active employment programs, but also the importance of achieving social results from these activities, and inadmissibility of dichotomy between their social and economic efficiency.
Key words: unemployed, Unemployment Insurance Fund, active employment programs, job placement of the unemployed.
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