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Effectiveness of the Public Work Program in Slovenia

Author

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  • Laura Juznik Rotar

    (Faculty of Commercial and Business Sciences, Slovenia)

Abstract

This paper evaluates the direct effects of the Slovenian public work program on the youth. The effectiveness of the program is measured by re-employment probability. A Heckman correction of selection is applied to estimate the average program effects. The Heckman selection estimator is an extensively used method to control for selection on unobserved variables. It relies on the assumption that a specific distribution of the unobservable characteristics jointly influences participation and outcome. The results of the empirical study indicate that the public work program has a positive effect on employment in the short run. In the long run, however, the results are not so obvious.

Suggested Citation

  • Laura Juznik Rotar, 2011. "Effectiveness of the Public Work Program in Slovenia," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 9(3), pages 275-287.
  • Handle: RePEc:mgt:youmgt:v:9:y:2011:i:3:p:275-287
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    More about this item

    Keywords

    active employment policies; evaluation; Heckman procedure; selection; treatment effects;

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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