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An analysis of participation factors and effects of the active labour market measure Graduate practice in Slovakia – Counterfactual approach

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  • Svabova, Lucia
  • Kramarova, Katarina

Abstract

The paper presents the results of the evaluation of the selected active labour market policy measure “Contribution to the Graduate practice” in Slovakia. The measure is of a voluntary nature and its main aim is to prevent long-term unemployment among young people and to support a competitive ability of young school-leavers and thus their employability and sustainability in the labour market through the acquisition of work experience, professional skills and work habits. In the study, we analyse the selected characteristics of young jobseekers who participated in this measure in 2016 and their counterfactuals who did not participate. In addition to 2016, the observed period includes a subsequent 2 years – the individual impact period of the measure for each participant, i.e. the years 2017 and 2018. We evaluated the effects of the measure by applying the exact matching of treated and non-treated individuals using the outcome variables, namely wages and placement in the labour market in the impact period of the measure. The results indicate that the Graduate practice had a positive impact on the employability and sustainability of its participants, but rather in short-term or maximum long-term. Regarding the wage levels referring to the financial appraisal of the participants of the measure, the results suggest that non-treated individuals were better financially evaluated and so the Graduate practice did not guarantee better salary to its participants. The findings of the study are important in the setting of conditions of the measure for future periods in order to achieve its better functioning and efficiency in the way of proper targeting, more efficient use of funds, and for a system of their redistribution.

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  • Svabova, Lucia & Kramarova, Katarina, 2021. "An analysis of participation factors and effects of the active labour market measure Graduate practice in Slovakia – Counterfactual approach," Evaluation and Program Planning, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:epplan:v:86:y:2021:i:c:s0149718921000124
    DOI: 10.1016/j.evalprogplan.2021.101917
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    Cited by:

    1. 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.
    2. Lucia Svabova & Katarina Kramarova, 2022. "Allowance for School Graduate Practice Performance in Slovakia: Impact Evaluation of the Intervention," Mathematics, MDPI, vol. 10(9), pages 1-27, April.
    3. Katarina Kramarova & Lucia Svabova & Barbora Gabrikova, 2022. "Impacts of the Covid-19 crisis on unemployment in Slovakia: a statistically created counterfactual approach using the time series analysis," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(2), pages 343-389, June.
    4. Lucia Svabova & Eva Nahalkova Tesarova & Marek Durica & Lenka Strakova, 2021. "Evaluation of the impacts of the COVID-19 pandemic on the development of the unemployment rate in Slovakia: counterfactual before-after comparison," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(2), pages 261-284, June.

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    More about this item

    Keywords

    Active labour market policy; Graduate practice; Evaluation; Exact matching; Youth unemployment;
    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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