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

Lucia Svabova (), Katarina Kramarova and Barbora Gabrikova
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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

Journal of Economics / Ekonomicky casopis, 2022, vol. 70, issue 2, 99-123

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.

Keywords: allowance for school-leaver practice performance; active labour market policy; intervention; youth unemployment; instrumental variable; counterfactual evaluation (search for similar items in EconPapers)
JEL-codes: C54 J08 J64 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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