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Improving Employment Prospects in the Slovak Republic: Building on Past Reforms

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  • Andrés Fuentes

Abstract

While employment growth has accelerated, allowing unemployment to fall significantly since 2005, many low-skilled workers are still unemployed and the duration of unemployment spells is still long. The introduction of an in-work benefit for workers in low-income households, subject to a minimum of hours worked, could lower barriers to higher employment which result from a relatively high tax wedge on lowskill workers, as would the elimination of poverty traps in the pension system. Measures to improve mobility of workers across regions, notably housing policy reform, would lower long unemployment durations, as would the provision of more training to the unemployed. Impediments to higher labour market participation of young women and older workers need to be removed. Améliorer les perspectives d'emploi en République Slovaque : faire fond sur les réformes passées Si la croissance de l’emploi s’est accélérée, permettant un recul notable du chômage depuis 2005, néanmoins il y a encore beaucoup de travailleurs peu qualifiés au chômage et la durée des épisodes de chômage reste longue. L’introduction d’une prestation liée à l’exercice d’une activité pour les travailleurs appartenant à des ménages à faible revenu, sous réserve d’un volume minimum d’heures travaillées, pourrait abaisser les obstacles à l’augmentation de l’emploi qui résultent du fait que le coin fiscal qui pèse sur les revenus des travailleurs peu qualifiés est relativement élevé, et l’élimination des trappes à pauvreté que crée le système de pension devrait avoir le même effet. Des mesures visant à accroître la mobilité des travailleurs entre régions, notamment avec une réforme de la politique du logement, permettraient de réduire les durées de chômage, de même qu’une offre accrue de formation à l’intention des chômeurs. Les éléments qui font obstacle à une plus forte participation des femmes jeunes et des travailleurs seniors à l’activité devraient être supprimés.

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 579.

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Date of creation: 24 Sep 2007
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Handle: RePEc:oec:ecoaaa:579-en

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Keywords: employment protection legislation; employment; active labour market policies; minimum wage; in-work benefits; unemployment; labour market participation; programmes du marché du travail; chômage; prestations liées à l'exercice d'un emploi; participation au marché du travail; emploi; pensions; protection de l'emploi; salaire minimum;

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Cited by:
  1. Fidrmuc, Jarko & Klein, Caroline & Price, Robert & Wörgötter, Andreas, 2013. "Slovakia: A Catching Up Euro Area Member In and Out of the Crisis," IZA Policy Papers 55, Institute for the Study of Labor (IZA).

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