Efficiency of Chosen Labor Market Programs for Disadvantaged Groups in Slovakia

Abstract: Despite extensive research on labor market programs, there is limited information on the effectiveness of current unemployment schemes targeting disadvantaged job seekers. A literature review reveals that labor market programs are generally viewed positively, with employment services deemed effective in terms of their impact on the unemployed or cost-effectiveness. This study examines the effectiveness of labor market programs implemented in the Slovak Republic from 2019 to 2023. These programs aimed either to create job opportunities directly or to provide counselling services to the long-term unemployed. The analysis utilized data from the Ministry of Labor, Social Affairs and Family, and the Office for Employment and Social Affairs, focusing on unemployed individuals who participated in programs targeting disadvantaged job seekers. Based on propensity score matching, participants in the programs were compared with non-participants during the specified period. The findings indicate that participation in a program does not affect the duration of long-term unemployment, which is primarily influenced by education and residence. However, the selected programs demonstrated a positive impact on participants, particularly in the long term. Keywords: Active Labor Market Policy, Labor Market Program, Disadvantaged Groups, Unemployment