Increasing the Labor Market Activity of the Poor, Females, and Informal Workers: Let’s Make Work Pay in Macedonia

Nikica Mojsoska Blazevski, Marjan Petreski () and Despina Petreska

Eastern European Economics, 2015, vol. 53, issue 6, 466-490

Abstract: This article simulates the effects of two alternative social policies—individual and family in-work benefits—on labor market choices in Macedonia, with special reference to the poor, females, and informal workers. The ex-ante analysis relies on a combined tax and benefit micro-simulation model for Macedonia (MAKMOD) and a structural model for labor supply, both utilizing the 2011 Survey of Income and Labor Conditions. Results suggest that the proposed reforms will have a considerable effect on the working choices of Macedonians. The family in-work benefit is found to be more effective for singles, and marginally effective for couples with only one working member. In addition, the effects are found to be larger for the poor, females, and informal workers, the categories most prone to be unemployed in Macedonia.

Date: 2015
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DOI: 10.1080/00128775.2015.1103656

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