ON-THE-JOB TRAINING, CLASSROOM TRAINING OR WAGE SUBSIDIES WHAT IS MORE EFFECTIVE FOR UNEMPLOYED PEOPLE? EVALUATION OF ACTIVE LABOUR MARKET POLICIES AT THE LOCAL LEVEL

Abstract

We analyse the medium-term relative effectiveness of three active labour market policies (ALMP): on-the-job training, classroom training, and wage subsidies offered to the unemployed in Mielec county between 2016 and 2019. We use administrative data (Syriusz, ZUS) and a counterfactual approach (propensity score matching). We show that wage subsidy is more effective than on-the-job training. Participation in wage subsidy instead of on-the-job training increases the probability of employment by about 10 p.p. two years after the start of the ALMP. Classroom training is less effective than on-the-job training in the short run but more effective in the long run. Participating in classroom training instead of on-the-job training increases the probability of employment by about 7 p.p. two years after the start of the ALMP.