Jobs from Active Labour Market Policies and Their Effects on Slovak Unemployment

Abstract

The system of active labour market policies (ALMP) in the Slovak Republic consists to a large extent of the creation of socially purposeful and publicly useful jobs. These jobs are intended for unemployed workers to get them out of unemployment, give them additional work experience and get them to find a regular job more easily. So far, the effects of these types of jobs on the labour market position of unemployed workers have hardly been investigated. This paper makes attempt to measure these effects. We use data from various administrative files to describe the outflow from unemployment into regular jobs and into ALMP-jobs, and the outflow from ALMP-jobs to regular jobs. We investigate to what extent it is beneficial for unemployed workers who want a regular job to accept a temporary ALW-job. We conclude that those workers who have a better position when it comes to finding regular jobs are also in a better position to find SPJ or PUJ. The jobs created by active labour market policies are complementary to the regular labour market rather than compensating for bad labour market characteristics.