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Work Incentives and the Probability of Leaving Unemployment in the Slovak Republic

  • Martina Lubyova
  • Jan C. van Ours

The system of unemployment benefits and subsistence benefits in Slovakia has potentially large disincentive effects with respect to the outflow from unemployment to a job. Especially low educated unemployed and unemployed with young children are often faced with replacement ratios which are close to 100%. We investigate whether the potential effects have an actual meaning. Using data from subsequent labour force surveys we analyze the (hazard) rates at which unemployed workers find jobs. We find no evidence of disincentive effects of the Slovak unemployment system.

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Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 82.

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Length: pages
Date of creation: 01 Jul 1997
Date of revision:
Handle: RePEc:wdi:papers:1997-82
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  1. Earle, John S. & Pauna, Catalin, 1996. "Incidence and duration of unemployment in Romania," European Economic Review, Elsevier, vol. 40(3-5), pages 829-837, April.
  2. van Ours, J.C., 1994. "Matching unemployed and vacancies at the public employment office," Other publications TiSEM d8261d35-28fe-44bc-9c14-0, Tilburg University, School of Economics and Management.
  3. Micklewright, John & Nagy, Gyula, 1996. "Labour market policy and the unemployed in Hungary," European Economic Review, Elsevier, vol. 40(3-5), pages 819-828, April.
  4. Lubyova, Martina & van Ours, Jan, 1997. "Unemployment dynamics and the restructuring of the Slovak unemployment benefit system," European Economic Review, Elsevier, vol. 41(3-5), pages 925-934, April.
  5. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
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