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

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  • Martina Lubyova
  • Jan C. van Ours

Abstract

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.

Suggested Citation

  • Martina Lubyova & Jan C. van Ours, 1997. "Work Incentives and the Probability of Leaving Unemployment in the Slovak Republic," William Davidson Institute Working Papers Series 82, William Davidson Institute at the University of Michigan.
  • Handle: RePEc:wdi:papers:1997-82
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    References listed on IDEAS

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    1. 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.
    2. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-782, July.
    3. 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.
    4. van Ours, Jan C, 1994. "Matching Unemployed and Vacancies at the Public Employment Office," Empirical Economics, Springer, vol. 19(1), pages 37-54.
    5. 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.
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    Cited by:

    1. Emmanuel Duguet & Florent Frémigacci & Yannick L’Horty, 2008. "Indemnisation du chômage et retour à l’emploi : un examen économétrique," Documents de recherche 08-07, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    2. repec:eee:labchp:v:3:y:1999:i:pb:p:2809-2857 is not listed on IDEAS
    3. Smirnova, Natalia, 2003. "Job search behavior of unemployed in Russia," BOFIT Discussion Papers 13/2003, Bank of Finland, Institute for Economies in Transition.

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