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

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.