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Counterfactual Assessment of the Allowance for School-leaver Practice Performance as a Measure of Active Labour Market Policy in Slovakia

Author

Listed:
  • Lucia Svabova

    (University of Zilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics)

  • Katarina Kramarova

    (University of Zilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics)

  • Barbora Gabrikova

    (University of Zilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics)

Abstract

The intervention Allowance for school-leaver practice performance is in Slovakia one of the active labour market policy instruments aimed at unemployed young school-leavers. It was put into practice to enable young jobseekers to gain their first contact with the labour market and first work experience and habits. As the state budget and EU social funds are used to finance this intervention, there is a natural need to evaluate its outcomes. In this study, the evaluation is carried out by a counterfactual approach. To cope with the problem of selection bias, the method of an instrumental variable is used. The results show that the intervention has a short to medium-term impact on the employability and a significant positive impact on wages. The results of this study have the potential to be used by the policymakers to create the conditions for the effective functioning of the measure and eligibility of the participants.

Suggested Citation

  • Lucia Svabova & Katarina Kramarova & Barbora Gabrikova, 2022. "Counterfactual Assessment of the Allowance for School-leaver Practice Performance as a Measure of Active Labour Market Policy in Slovakia," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(2), pages 99-123, February.
    • Handle: RePEc:sav:journl:v:70:y:2022:i::p:99-123
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    References listed on IDEAS

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    More about this item

    Keywords

    allowance for school-leaver practice performance; active labour market policy; intervention; youth unemployment; instrumental variable; counterfactual evaluation;
    All these keywords.

    JEL classification:

    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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