Working Paper: CEPR ID: DP17055
Authors: Analia Schlosser; Yannay Shanan
Abstract: We evaluate the effectiveness of an Active Labor Market Program that focuses on enhancing soft skills of welfare recipients using a large-scale RCT. The program increased participants’ employment rates and decreased income support recipiency. The effects persist five to six years after its implementation, even during the Covid-19 crisis. The analysis of the mechanisms shows positive effects on participants’ soft skills, mainly among those with no recent employment spell, who gradually joined the labor market after participation in the program. In contrast, individuals with a recent employment spell went back to employment soon after their allocation to the program.
Keywords: ALMP; soft skills; noncognitive skills; program evaluation
JEL Codes: J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Active Labor Market Program (ALMP) (J68) | Employment Rates (J68) |
| Active Labor Market Program (ALMP) (J68) | Income Support Recipiency (H53) |
| Active Labor Market Program (ALMP) (J68) | Employment Office Reporting (5-6 years after randomization) (J68) |
| Active Labor Market Program (ALMP) (J68) | Threat Effect (E71) |
| Active Labor Market Program (ALMP) (J68) | Enhanced Soft Skills (J24) |
| Enhanced Soft Skills (J24) | Increased Employment Rates (J68) |
| Active Labor Market Program (ALMP) (J68) | Fiscal Impact (H39) |