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Increasing the Labor Market Activity of the Poor, Females, and Informal Workers: Let’s Make Work Pay in Macedonia

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  • Nikica Mojsoska Blazevski
  • Marjan Petreski
  • Despina Petreska

Abstract

This article simulates the effects of two alternative social policies—individual and family in-work benefits—on labor market choices in Macedonia, with special reference to the poor, females, and informal workers. The ex-ante analysis relies on a combined tax and benefit micro-simulation model for Macedonia (MAKMOD) and a structural model for labor supply, both utilizing the 2011 Survey of Income and Labor Conditions. Results suggest that the proposed reforms will have a considerable effect on the working choices of Macedonians. The family in-work benefit is found to be more effective for singles, and marginally effective for couples with only one working member. In addition, the effects are found to be larger for the poor, females, and informal workers, the categories most prone to be unemployed in Macedonia.

Suggested Citation

  • Nikica Mojsoska Blazevski & Marjan Petreski & Despina Petreska, 2015. "Increasing the Labor Market Activity of the Poor, Females, and Informal Workers: Let’s Make Work Pay in Macedonia," Eastern European Economics, Taylor & Francis Journals, vol. 53(6), pages 466-490, November.
    • Handle: RePEc:mes:eaeuec:v:53:y:2015:i:6:p:466-490
    DOI: 10.1080/00128775.2015.1103656
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    Cited by:

    1. Ranđelović Saša & Žarković Rakić Jelena & Vladisavljević Marko & Vujić Sunčica, 2019. "Labour Supply and Inequality Effects of In-Work Benefits: Evidence from Serbia," Naše gospodarstvo/Our economy, Sciendo, vol. 65(3), pages 1-22, September.
    2. Slavko Bezeredi & Marko Ledić & Ivica Rubil & Ivica Urban, 2019. "Making work pay in Croatia: An ex-ante evaluation of two in-work benefits using miCROmod," International Journal of Microsimulation, International Microsimulation Association, vol. 12(3), pages 28-61.
    3. Petreski, Marjan. & Mojsoska-Blazevski, Nikica., 2015. "The gender and motherhood wage gap in the Former Yugoslav Republic of Macedonia : an econometric analysis," ILO Working Papers 994895293402676, International Labour Organization.

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