Fostering Non-Cognitive Skills in Active Labor Market Programs: Evidence from an RCT in Israel

(jpint with Yannay Shanan)

Using a randomized controlled trial, we evaluate the effectiveness of an Israeli Active Labor Market Program targeted at income support claimants. In this program, participants receive a personalized treatment composed of weekly sessions with occupational trainers and motivational and job search assistance workshops. We find that the program increased the employment rate of participants decreased income support recipiency relative to the control group. The effects are larger for high school dropouts and those with a longer history of welfare dependence. We find that one of the possible mediating factors of the program’s impact is an improvement in non-cognitive skills. Namely, the program had a positive and significant effect on work self-efficacy and job search self-efficacy of program participants.