**Table 7: Observed mean hourly wages (2011 PPP USD)**

||Observed|Simulated|
|---|---|---|
|FT Males|1.5|1.3|
|PT Males|0.6|0.7|
|FT Females|1.2|1.2|
|PT Females|0.5|0.6|

_Source:_ Authors’ calculations.

_Note:_ Abbreviations: FT= employed full-time; PT= employed part-time. This table presents the converted values in 2011 USD PPP dollars.

# **6. Policy Experiments**

**In the region, some national action plans**<sup>**30**</sup> **exist for Roma inclusion, and some countries in the Western Balkans have funding for activities that promote employment specifically for Roma.  On the other hand, current monitoring and evaluation of policies are not adequate mostly because of the lack of ethnic disaggregated data (Robayo-Abril and Millan 2019** ). In this context, it is critical to evaluate ex-ante the impact of some policy measures that can have on Roma labor market participation and time allocation decisions. In this section, we perform seven counterfactual policy experiments designed to (i) improve Roma labor market conditions, and (ii) change the home production productivity distributions or the arrival of the fertility shock.

**The intervention policies affecting the labor demand include antidiscrimination measures and employers’ economic incentives to employ Roma population.** <mark>Examples of these policies are quota requirements in job positions and laws against labor discrimination and any type of violence.</mark> Positive action measures are being implemented in the region, including quotas in public administration in Albania, North Macedonia, and Serbia, and quotas for active labor market policies in Kosovo. Serbia spends a considerable amount on employment, as referenced in the 2016 National Progress Report. Most of the regional budget in employment and labor markets is spent on affirmative action measures to enhance employment and economic empowerment of Roma business activities. In North Macedonia, for instance, the Ministry of Education is also implementing affirmative measures to support the Roma population employment. Other policies include outreach to Roma communities to increase their registration with local public employment services (PES). This outreach includes Roma mediators and information campaigns in Bosnia and Herzegovina, North Macedonia and Montenegro; a dedicated career counseling program in Albania; and measures to reduce discrimination from the PESs themselves, such as Roma-sensitive training for PES staff in of Serbia and Montenegro.<sup>31</sup>

**Among the economic incentives to employ the Roma population are stick-and-carrot measures for the private sector focused on bringing Roma into companies, such as tax incentives, better tools for skills assessments, and employment protection legislation (EPL).** Albania, North Macedonia, Montenegro, and Serbia implement financial incentives to hire Roma employees. Albania offers subsidized employment, affordable credit lines for businesses employing Roma, and tax breaks for Roma firms. Countries also are implementing financial measures aimed at employment promotion include the employment subsidy program, the self-employment program, subsidy programs under the persons with disabilities vocational rehabilitation and employment system, and the public works

> 30 These are documents that outline the strategic framework of policy actions and priorities for the next 5 to 10 years.

> 31 Source: Robayo- Abril and Millan (2019).

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