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Unemployment Benefit Systems in Central and Eastern Europe: A Review of the 1990s1

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Author Info

  • Milan Vodopivec

    ()
    (The World Bank, Washington, DC, USA.)

  • Andreas W�rg�tter

    (OECD, Paris)

  • Dhushyanth Raju

    (Cornell University, Ithaca, NY, USA)

Abstract

The paper provides an overview of unemployment benefit systems in Central and Eastern Europe during the 1990s. It describes their institutional features (eligibility, the level and duration of benefits, and special rules), discusses issues arising in their implementation, and examines their performance. Income protection effects, derived from the empirical analysis of household income and expenditures surveys, pertain to the coverage, the average size of benefits in household income, and the targeting of benefits. Efficiency effects, obtained from a literature review, are related to the effects of benefits on the duration of unemployment spell, restructuring, and overall unemployment and employment rates. The evidence shows that (i) unemployment benefits were progressive; (ii) that, in countries with broad coverage and sizeable share of benefits in household incomes, they strongly reduced poverty; and (iii) that, similar to findings for developed economies, they created work disincentives. Comparative Economic Studies (2005) 47, 615–651. doi:10.1057/palgrave.ces.8100062

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

Volume (Year): 47 (2005)
Issue (Month): 4 (December)
Pages: 615-651

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Handle: RePEc:pal:compes:v:47:y:2005:i:4:p:615-651

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References

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  1. Jan C. van Ours & Milan Vodopivec, 2006. "How Shortening the Potential Duration of Unemployment Benefits Affects the Duration of Unemployment: Evidence from a Natural Experiment," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 351-378, April.
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Citations

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Cited by:
  1. Alexei Izyumov, 2010. "Human Costs of Post-communist Transition: Public Policies and Private Response," Review of Social Economy, Taylor & Francis Journals, vol. 68(1), pages 93-125.
  2. Alexei Izyumov & Trista Claxon, 2009. "Models of Capitalism and Income Distribution in Transition Economies: A Comparative Perspective," Journal of Economic Issues, M.E. Sharpe, Inc., vol. 43(3), pages 733-758, September.
  3. David Margolis & Lucas Navarro & David A. Robalino, 2014. "Unemployment Insurance, Job Search, and Informal Employment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00714372, HAL.
  4. Holzmann, Robert & Pouget, Yann & Vodopivec, Milan & Weber, Michael, 2011. "Severance pay programs around the world : history, rationale, status, and reforms," Social Protection Discussion Papers 62726, The World Bank.
  5. Zuzana Brixiova, 2009. "Labour Market Flexibility In Estonia: What More Can Be Done?," William Davidson Institute Working Papers Series wp964, William Davidson Institute at the University of Michigan.
  6. Robalino, David A. & Vodopivec, Milan & Bodor, András, 2009. "Savings for Unemployment in Good or Bad Times: Options for Developing Countries," IZA Discussion Papers 4516, Institute for the Study of Labor (IZA).
  7. Vodopivec, Milan, 2008. "How Viable Are Unemployment Insurance Savings Accounts: Simulation Results for Slovenia," IZA Discussion Papers 3438, Institute for the Study of Labor (IZA).
  8. Vodopivec, Milan, 2009. "Introducing Unemployment Insurance to Developing Countries," IZA Policy Papers 6, Institute for the Study of Labor (IZA).
  9. Primož Dolenc & Suzana Laporšek, 2010. "Tax Wedge on Labour and its Effect on Employment Growth in the European Union," Prague Economic Papers, University of Economics, Prague, vol. 2010(4), pages 344-358.
  10. Vodopivec, Milan & Tong, Minna Hahn, 2008. "China : improving unemployment insurance," Social Protection Discussion Papers 44779, The World Bank.
  11. Lucia Kureková, 2013. "Welfare Systems as Emigration Factor: Evidence from the New Accession States," Journal of Common Market Studies, Wiley Blackwell, vol. 51(4), pages 721-739, 07.
  12. Primoz Dolenc & Suzana Laporsek, 2012. "Labour Taxation and Its Impact on Employment Growth," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 10(3 (Fall)), pages 301-318.
  13. Tamar Khitarishvili, 2013. "The Economic Crisis of 2008 and the Added Worker Effect in Transition Countries," Economics Working Paper Archive wp_765, Levy Economics Institute.

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