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Living Standards and Incentives in Transition: the Implications of Unemployment Insurance Exhaustion in Hungary

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  • Micklewright, John
  • Nagy, Gyula

Abstract

The single most likely way to leave the unemployment insurance (UI) register in Hungary is not by getting a job but by exhausting entitlement to benefit. Two questions follow. First, what are the implications of the cessation of UI for living standards? Second, does UI exhaustion have much effect on the probability of getting a job through increasing incentives to work? We investigate these issues with a survey of persons exhausting entitlement to UI in Summer 1995, paying special attention to the household circumstances of the unemployed and to the probabilities of claiming and being awarded means-tested assistance benefit.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2061.

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Date of creation: Jan 1999
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Handle: RePEc:cpr:ceprdp:2061

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Keywords: Hungary; Incentives; living standards; Social Assistance; Unemployment Insurance;

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  1. Bird, Richard & Wallich, Christine, 1992. "Financing local government in Hungary," Policy Research Working Paper Series 869, The World Bank.
  2. Gruber, Jonathan, 1997. "The Consumption Smoothing Benefits of Unemployment Insurance," American Economic Review, American Economic Association, vol. 87(1), pages 192-205, March.
  3. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July.
  4. Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-38, February.
  5. Jonathan Gruber, 1994. "The Consumption Smoothing Benefits of Unemployment Insurance," NBER Working Papers 4750, National Bureau of Economic Research, Inc.
  6. Newbery, David M G, 1995. "Tax and Benefit Reform in Central and Eastern Europe," CEPR Discussion Papers 1167, C.E.P.R. Discussion Papers.
  7. Browning, Martin & Crossley, Thomas F., 2001. "Unemployment insurance benefit levels and consumption changes," Journal of Public Economics, Elsevier, vol. 80(1), pages 1-23, April.
  8. Narendranathan, W & Nickell, S & Stern, J, 1985. "Unemployment Benefits Revisited," Economic Journal, Royal Economic Society, vol. 95(378), pages 307-29, June.
  9. Duclos, Jean-Yves, 1995. "Modelling the take-up of state support," Journal of Public Economics, Elsevier, vol. 58(3), pages 391-415, November.
  10. Micklewright, J & Nagy, G, 1996. "A Follow-Up Survey of Unemployment Insurance Exhausters in Hungary," Economics Working Papers eco96/08, European University Institute.
  11. Blundell, Richard & Fry, Vanessa & Walker, Ian, 1987. "Modelling the Take-up of Means-tested Benefits: the Case of Housing Benefits in the United Kingdom," Economic Journal, Royal Economic Society, vol. 98(390), pages 58-74, Supplemen.
  12. Milan Vodopivec, 1998. "Transition from cash benefits to work: The case of Slovenia," Empirical Economics, Springer, vol. 23(1/2), pages 177-202.
  13. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
  14. Scott Edwards & Tito Boeri, 1998. "Long-term unemployment and short-term unemployment benefits: The changing nature of non-employment subsidies in Central and Eastern Europe," Empirical Economics, Springer, vol. 23(1/2), pages 31-54.
  15. Micklewright, John & Nagy, Gyula, 1995. "Unemployment Insurance and Incentives in Hungary," CEPR Discussion Papers 1118, C.E.P.R. Discussion Papers.
  16. Gyula Nagy & John Micklewright, 1998. "Unemployment assistance in Hungary," Empirical Economics, Springer, vol. 23(1/2), pages 155-175.
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