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Towards a More Inclusive Labour Market in Hungary

Author

Listed:
  • Rafal Kierzenkowski

    (OECD)

Abstract

A rapid decrease in unemployment is a short-term priority to limit social problems and reduce the risk of rising structural unemployment. To this end, strengthening labour market policies to sustain labour demand is key. The public works programme should remain temporary and become more focused on training. The authorities should also refrain from further raising the minimum wage. Fundamental structural reforms are needed in the medium term to raise one of the lowest participation rates in the OECD. This challenge is acute in the context of a rapidly ageing population. The authorities have started restructuring the tax/benefit system to make work pay and increase labour supply, yet additional efforts are needed to foster the inclusiveness of the labour market. Groups which are significantly under-represented in the labour market include the low-skilled, youth, the elderly, women of childbearing age, the disabled and the Roma. Structural measures are needed to develop part-time and other flexible forms of employment, reform family policies, ease the integration of people with disability into the labour market, better attune the education system to labour market needs, enhance the level of qualifications and skills at different ages, diminish disincentives to work at older ages and break the segregation of the Roma. This Working Paper relates to the 2012 OECD Economic Survey of Hungary (www.oecd.org/eco/surveys/hungary) Vers un marché du travail plus inclusif en Hongrie L’une des priorités immédiates des pouvoirs publics consiste à faire reculer rapidement le chômage afin de limiter les problèmes sociaux et de réduire les risques d’une montée du chômage structurel. Pour y parvenir, il est indispensable de renforcer les politiques du marché du travail, capables de soutenir la demande de travail. Le programme de travaux publics doit rester temporaire et être davantage axé sur la formation. Les autorités devraient également s’abstenir de relever davantage le salaire minimum. Des réformes structurelles fondamentales sont nécessaires à moyen terme pour que le taux d’activité de la Hongrie ne figure plus parmi les plus bas de la zone OCDE. Il s’agit d’un enjeu majeur dans le contexte du vieillissement rapide de la population. Les pouvoirs publics ont commencé à restructurer le système de prélèvements et de prestations afin d’augmenter les incitations financières au travail et l’offre de main-d’oeuvre. Néanmoins, ils devront consentir des efforts supplémentaires pour veiller à ce que le marché du travail soit plus inclusif. En effet, plusieurs catégories de population sont significativement sous-représentées sur le marché du travail, comme les peu qualifiés, les jeunes, les seniors, les femmes en âge de procréer, les handicapés et les Roms. Des mesures structurelles s’imposent pour développer l’emploi à temps partiel et d’autres formes flexibles d’emploi, réformer les politiques familiales, faciliter l’insertion professionnelle des handicapés, adapter le système éducatif aux besoins du marché du travail, accroître le niveau de qualifications et de compétences à tous les âges, renforcer les incitations à la poursuite de l’activité à un âge avancé et lutter contre la discrimination à l’égard des Roms. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Hongrie, 2012 (www.oecd.org/eco/etudes/hongrie).

Suggested Citation

  • Rafal Kierzenkowski, 2012. "Towards a More Inclusive Labour Market in Hungary," OECD Economics Department Working Papers 960, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:960-en
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    File URL: http://dx.doi.org/10.1787/5k98rwqw3v8q-en
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    References listed on IDEAS

    as
    1. Áron Kiss & Pálma Mosberger, 2015. "The elasticity of taxable income of high earners: evidence from Hungary," Empirical Economics, Springer, vol. 48(2), pages 883-908, March.
    2. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    3. Jérôme Gautié & David Margolis, 2010. "L’impact de la politique publique sur le marché du travail à bas salaire: offre, demande et qualité de l’emploi," Post-Print hal-01096856, HAL.
    4. Eichhorst, Werner & Kendzia, Michael J. & Knudsen, Jonathan Benjamin & Hansen, Mette Okkels & Vandeweghe, Barbara & Vanhoren, Ingrid & Rückert, Eva & Schulte, Bernd, 2010. "The Mobility and Integration of People with Disabilities into the Labour Market," IZA Research Reports 29, Institute for the Study of Labor (IZA).
    5. Zsombor Cseres-Gergely, 2007. "Inactivity in Hungary - the persistent effect of the pension system," Budapest Working Papers on the Labour Market 0701, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    6. World Bank, 2008. "Czech Republic : Improving Employment Chances of the Roma," World Bank Other Operational Studies 18915, The World Bank.
    7. Péter Benczúr & Gábor Kátay & Áron Kiss & Balázs Reizer & Mihály Szoboszlai, 2011. "Analysis of changes in the tax and transfer system with a behavioural microsimulation model," MNB Bulletin (discontinued), Magyar Nemzeti Bank (Central Bank of Hungary), vol. 6(3), pages 15-27, October.
    8. Mehmet Eris, 2012. "Improving Health Outcomes and System in Hungary," OECD Economics Department Working Papers 961, OECD Publishing.
    9. Jérôme Gautié & David Margolis, 2010. "L'impact de la politique publique sur le marché du travail à bas salaire : offre, demande et qualité de l'emploi," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00607374, HAL.
    10. Pierre Beynet & Rafal Kierzenkowski, 2012. "Ensuring Debt Sustainability Amid Strong Economic Uncertainty in Hungary," OECD Economics Department Working Papers 958, OECD Publishing.
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    More about this item

    Keywords

    benefit system; chômage; Hongrie; Hungary; labour force participation rates; labour market policies; minimum wage; politique du marché du travail; salaire minimum; système de prestations; taux d’activité; unemployment;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • 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; Retirement Plans; Private Pensions
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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