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Tackling Labour Mismatches and Promoting Mobility in Hungary

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  • Stéphane Sorbe

    (OECD)

Abstract

Significant labour market mismatches and insufficient mobility penalise employment and productivity. Mismatches have above all a skills dimension, with an excess of low-skilled workers and a possible lack of skilled workers in certain domains. Reducing the high tax wedge on low salaries and avoiding excessive minimum wage increases would support demand for low-skilled labour. In the longer term, upgrading the labour supply requires improving educational outcomes, especially of disadvantaged students, and making the school-to-work transition less abrupt. To facilitate good matching and enhance sectoral mobility, a somewhat longer duration of unemployment benefits and an upscaled Public Employment Service would be of value, as well as greater focus on reintegration in the public works programme and more efficient and developed lifelong learning. Besides skills mismatches, important geographic mismatches are illustrated by high and persistent regional disparities in the unemployment rate. Mobility is hampered by the underdevelopment of the rental housing market, while there is room to enhance the efficiency of public transport to further support commuting. Améliorer l'adéquation offre-demande de travail et promouvoir la mobilité en Hongrie D’importants déséquilibres du marché du travail et une mobilité insuffisante pénalisent l'emploi et la productivité. Les inadéquations de main d’oeuvre concernent surtout les compétences, avec un excès de travailleurs peu qualifiés et un possible manque de travailleurs qualifiés dans certains domaines. Réduire le coin fiscal élevé sur les bas salaires et éviter des augmentations excessives du salaire minimum soutiendraient la demande de main-d'oeuvre peu qualifiée. À plus long terme, la mise à niveau de l'offre de travail passe par l’amélioration des résultats scolaires, en particulier des étudiants défavorisés, et par une transition moins abrupte des études à l'emploi. Pour faciliter une bonne allocation de main d’oeuvre et d'améliorer la mobilité sectorielle, une durée un peu plus longue des prestations de chômage et un meilleur Service public de l'emploi seraient utiles, ainsi qu’un accent plus prononcé sur la réintégration dans le programme de travaux publics et une formation continue plus efficace et mieux développée. Outre l'inadéquation des compétences, d’importants déséquilibres géographiques sont illustrés par la persistance de fortes disparités régionales du taux de chômage. La mobilité est entravée par le sous-développement du marché du logement locatif et il serait possible d’améliorer l’efficacité des transports publics pour davantage encourager les déplacements domicile-travail.

Suggested Citation

  • Stéphane Sorbe, 2014. "Tackling Labour Mismatches and Promoting Mobility in Hungary," OECD Economics Department Working Papers 1122, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1122-en
    DOI: 10.1787/5jz2px6jtpmt-en
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    More about this item

    Keywords

    coin fiscal; compétences; education; Hongrie; housing; Hungary; labour mismatches; logement; marché du travail; public works; skills; tax wedge; transport; transport; éducation;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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