Fostering Soft Skills in Active Labor Market Programs

Abstract

Using a large-scale randomized controlled trial, we evaluate the effectiveness of an Active Labor Market Program that focuses on enhancing soft skills of welfare recipients. The program increased participants’ employment rates and decreased income-support recipiency. The impacts persist five to six years after the program’s implementation, even during the Covid-19 crisis. The analysis of the mechanisms shows positive effects on the soft skills of the participants, mainly among those with no recent employment history, who gradually joined the labor market after participation in the program. In contrast, individuals with a recent employment spell joined the labor market soon after their assignment to the program.