Does work pay in Slovenia?
AbstractIncome transfers may generate work disincentives: if certain income payments are stopped when individuals (re)enter employment, this creates disincentives for taking employment – so called “unemployment trap”. To make work pay, several countries have introduced policies – financial incentives – which enhance employment opportunities for marginal groups in the labor market. Such policies increase in-work incomes and so improve work incentives for those receiving only out-of-work incomes. This paper tries to shed light on two questions, first being how does “making work pay” work in Slovenia, compared OECD countries, and the second, should Slovenia introduce earnings supplements or other in-work arrangements in tackling possible unemployment trap. According to international comparison Slovenia does not “step-out”, when we look at net replacement rates. Slovenia, however, has not introduced a single active labor programs that would stimulate directly and financially unemployed to join (official) employment, even though a lower paid job. In the paper we suggest the implementation of some kind of in-work arrangement at least for those, who are potentially less stimulated to reemploy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Institute of Public Finance in its journal Financial Theory and Practice.
Volume (Year): 29 (2005)
Issue (Month): 4 ()
economic policy; financial incentives to work; Slovenia; EU; OECD.;
Find related papers by JEL classification:
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Giuseppe Carone & Aino Salom�ki & Herwig Immervoll & Dominique Paturot, 2003.
"Indicators of unemployment and low-wage traps (marginal effective tax rates on labour),"
European Economy - Economic Papers
197, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- Giuseppe Carone & Aino Salomaki & Herwig Immervoll & Dominique Paturot, 2004. "Indicators of unemployment and low-wage traps (Marginal effective tax rates on labour)," Labor and Demography 0409007, EconWPA.
- David Card & Philip K. Robins, 1996. "Do Financial Incentives Encourage Welfare Recipients to Work? Evidence from a Randomized Evaluation of the Self-Sufficiency Project," NBER Working Papers 5701, National Bureau of Economic Research, Inc.
- Giuseppe Carone & Herwig Immervoll & Dominique Paturot & Aino Salomäki, 2004. "Indicators of Unemployment and Low-Wage Traps: Marginal Effective Tax Rates on Employment Incomes," OECD Social, Employment and Migration Working Papers 18, OECD Publishing.
- Herwig Immervoll & Cathal O’Donoghue, 2003.
"Employment Transitions in 13 European Countries. Levels, Distributions and Determining Factors of Net Replacement Rates,"
CESifo Working Paper Series
1091, CESifo Group Munich.
- Immervoll, Herwig & O'Donoghue, Cathal, 2003. "Employment transitions in 13 European countries: levels, distributions and determining factors of net replacement rates," EUROMOD Working Papers EM3/03, EUROMOD at the Institute for Social and Economic Research.
- Robert Haveman, 1995. "Reducing Poverty while Increasing Employment: A Primer on Alternative Strategies, and a Blueprint," OECD Jobs Study Working Papers 7, OECD Publishing.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martina Fabris).
If references are entirely missing, you can add them using this form.