Does the Slovenian Public Work Program Increase Participants' Chances to Find a Job?

Abstract

This paper analyzes the effects of Slovenian public works on employability of the participants during 1992-1996. It shows that immediately upon the completion, the program helps the participants to find a job, but in the longer run, the positive effect is dissipated and the impact becomes negative. Some of the exits to employment upon the completion of the program can be attributed to converting public jobs positions to permanent ones, and the longer term negative impact on finding a job could be related to stigmatization of the participants. The study also shows that public works reduce I the exit rate to inactivity.