GBU College Logo
Sign in with GBU Microsoft

COST-BENEFIT ANALYSIS OF VOCATIONAL TRAINING AS AN ACTIVE LABOR MARKET MEASURE

Transylvanian Review of Administrative Sciences | 2026

Paper Details

Authors: Pașnicu D.

DOI: 10.24193/tras.77E.6

Journal: Transylvanian Review of Administrative Sciences

Year: 2026

Publisher: Babes-Bolyai University

Document Type: Article

Open Access: All Open Access; Gold Open Access; Green Open Access

Cited by: 0

Abstract

Cost-benefit analysis is an essential tool for evaluating public policies, providing decision-makers with a solid foundation for implementing efficient solutions. The purpose of this article is to assess the effectiveness of vocational training programs as an active labor market measure, using a cost-benefit analysis methodology developed by the author. The methodology was developed and applied within the ReCONECT project – Adapting to Change: Integrated Mechanism for Anticipation, Monitoring, and Evaluation of the Labor Market and Education (2021-2022), using data from the General Registry of Employees (REVISAL) and the National Employment Agency (NEA). The analysis includes monitoring participants’ trajectories, evaluating employment rates at the end of the training programs and at 3, 6, 9, and 12 months post-completion, as well as identifying and monetizing direct costs and benefits. Additionally, the study analyzes regional disparities in program efficiency. Findings indicate that, on average, the measure becomes economically efficient six months after course completion. The significant differences across development regions highlight the importance of tailoring programs to local contexts and ensuring the efficient use of public resources in employment policy. © 2026, Babes-Bolyai University. All rights reserved.

Keywords

active measures; cost-benefit analysis; employment; public policies; vocational training