Activation Policy as an Investment in Human Capital: Theory and Practice

Abstract

Introduction. Social and economic activation programs are a key area of the social policy in advanced economies. A defining feature of this policy is a shift in focus from passive assistance to employment promotion and economic activity. Problem Statement. Implementation of activation programs requires the creation of a relevant methodological basis and tools for their development, realization and evaluation. Purpose. To substantiate approaches to the implementation and evaluation of programs for activating idle recipients of social assistance. Materials and Methods. The results of projects implemented as part of international support programs in 2011-2018, in particular, a pilot project directed to test mechanisms for attracting recipients of benefits to the labor market have been considered. The face-to-face sociological survey methods, statistical methods for processing anonymous data from the social assistance system registry, as well as the method of combining data from the registry and the survey have been used. A methodology for monitoring the effectiveness and efficiency of activity tools has been specially developed. Results. The prerequisites for creation of the activation policy were identified, and the experience of its implementation has been generalized. Based on the assessment of the composition and psychological attitudes of social assistance recipients, results of previous reforms, the relevance of implementing activation programs in Ukraine has been proved. The essence of programs promoting employment and activating socially vulnerable groups of the population has been determined. The project has been evaluated on a set of criteria, including the impact on unemployment, poverty, budget revenues, and jobs. Recommendations on the practical implementation of activation programs have been developed. Conclusions. Piloting the activation tools has shown their high efficiency. However, in spite of the obvious positive results, risks that shall be taken into account when introducing the tools into practice have been identified.