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Improving the Functioning of the Slovenian Labour Market

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Author Info
Isabell Koske

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Abstract

Labour market outcomes have improved markedly in the past years as the beneficial effects of the economic upswing were reinforced by important structural reforms.With the economy on the verge of a severe economic downturn, it is important to avoid alleviating measures that adversely affect the functioning of the labour market in the long run. Moreover, several structural challenges remain which require further reform efforts. Firstly, to raise labour force participation of the elderly the pension system needs to be reformed by removing incentives for early retirement and facilitating gradual exits from the labour force. Secondly, to increase employment rates of younger age cohorts, the length of tertiary studies needs to be reduced by strengthening incentives for rapid graduation. Moreover, potential negative employment effects associated with the relatively high minimum wage compared to the average wage should be avoided. Thirdly, to combat increasing labour market dualism, employment protection legislation on regular work contracts needs to be eased once the current economic crisis subsides and the preferential treatment of student work should be phased out. This Working Paper relates to the 2009 OECD Economic Survey of the Slovenia (www.oecd.org/eco/surveys/slovenia).

Améliorer le fonctionnement du marché de travail de la Slovénie
La situation du marché du travail s’est nettement améliorée ces dernières années, sous l’effet cumulé du redressement économique et d’importantes réformes structurelles. Face à la menace imminente d’un ralentissement économique grave, il est essentiel d’éviter toute mesure de soutien qui pourrait nuire au bon fonctionnement du marché du travail à terme. Des efforts restent en outre à fournir en matière de réformes pour remédier à certaines difficultés structurelles. Tout d’abord, le régime de retraite doit être remanié afin d’améliorer le taux d’activité des travailleurs âgés, en éliminant les incitations à la retraite anticipée et en facilitant la sortie progressive de la population active. Ensuite, pour stimuler l’emploi des jeunes, il faut réduire la durée des études supérieures, en renforçant les mesures d’incitation à l’obtention rapide des diplômes, et éviter par ailleurs les effets potentiellement négatifs sur l’emploi du niveau relativement élevé du salaire minimum. Enfin, pour lutter contre le dualisme croissant du marché du travail, on devra assouplir la législation sur la protection de l’emploi pour les contrats de travail réguliers une fois la crise économique dissipée, et il convient aussi de supprimer progressivement le traitement préférentiel appliqué à l’emploi des étudiants. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Slovénie 2009 (www.oecd.org/eco/études/slovénie).

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Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 719.

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Date of creation: 12 Nov 2009
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Handle: RePEc:oec:ecoaaa:719-en

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Related research
Keywords: labour force participation; labour market dualism; Slovenia; dualisme du marché du travail; Slovénie; taux d'activité;

Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions

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This page was last updated on 2009-11-23.

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