Efficiency of the Active Labour Market Policies: Evidence from the Slovak Republic

This paper analyses the performance of active labour market policies (ALMP) in Slovakia. We found limited evidence of the economic efficiency of the ALMP in Slovakia. We quantify the relative importance of the ALMP compared to other factors for the employability of job seekers. ALMP performance relates to a host of external factors, such as business cycles, the number of local job vacancies, discrimination towards some ethnic minorities, and levels of regional development. Furthermore, we quantify policy effectiveness of the most important ALMP instruments. The concluding part of the paper points towards the importance of the ongoing demographic transition for revamping the current structure of ALMP.