Assessing the impact of off- and on-the-job training on employment outcomes. A counterfactual evaluation of the PIPOL program

This evaluation study aims to assess the impact of PIPOL, a program of active labor policies, on the employment integration of benefit recipients. We resorted to a counterfactual approach with data from two main sources: data from the program’s administration and compulsory communications from employers on employment and unemployment spells. We found an average net impact on employment of +5pp, with positive impact on on-the-job training, but not on off-the-job training. On-the-job training also affected the probability to find permanent employment (+3pp). This is consistent with the view that while Italian young people have excellent theoretical preparation they have very little work-related competences. These results are partly due to a lock-in effect, namely the tendency of those who attend training programs to delay their job search. Interestingly, we found a different impact for different typologies of recipients. In short, active labor policy appears effective when generating work-related competences.