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Assessing the impact of off- and on-the-job training on employment outcomes. A counterfactual evaluation of the PIPOL program

Author

Listed:
  • Pastore, Francesco
  • Pompili, Marco

Abstract

This evaluation study aims to assess the impact of PIPOL, an integrated program of active labor policies, on the employment integration of benefit recipients. To address the issue, we have resorted to a counterfactual approach with data from two main sources: the program administration and compulsory communications on employment and unemployment spells. We found a net impact of 5% on average for on-the-job training, but no impact for off-the-job training. On-the-job training also affects the probability to find permanent work (+3%). This is consistent with the view that young people have excellent theoretical, but very little work-related competences. Off-the-job training does affect the probability to experience at least one labor contract after 2016. These results are partly due to a lock-in effect, namely the tendency of those who attend training programs to delay their job search. Interestingly, we found that the program has a different impact for different typologies of recipients and different types of intervention. In a nutshell, active labor policy works when it generates work-related competences.

Suggested Citation

  • Pastore, Francesco & Pompili, Marco, 2019. "Assessing the impact of off- and on-the-job training on employment outcomes. A counterfactual evaluation of the PIPOL program," GLO Discussion Paper Series 333, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:333
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    File URL: https://www.econstor.eu/bitstream/10419/193688/1/GLO-DP-0333.pdf
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    More about this item

    Keywords

    youth unemployment; school-to-work transition; professional training; on-the-job training; matching; evaluation;

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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