Measuring the Generosity of Unemployment Benefit Systems: Evidence from Hungary and elsewhere in Central Europe

Elena Bardasi (), Ana Lasaosa, John Micklewright () and Gyula Nagy ()
Additional contact information
Elena Bardasi: CEPS/INSTEAD International Network for Studies in Technology, Environment, Alternatives, Development, Luxembourg
Gyula Nagy: Department of Human Resources, Budapest University of Economics

No 9908, Budapest Working Papers on the Labour Market from Institute of Economics, Centre for Economic and Regional Studies

Abstract: The paper considers two aspects of the targeting of unemployment benefit systems (a) the probability that benefit is received in the population of those unemployed on standard international criteria of search and availability, and (b) the probability in the population of benefit recipients that search is conducted. The focus is on Hungary but stylised facts for a range of Central European countries and two EU comparators are derived in the first part of the paper. The second part of the paper finds that most of the large decline in coverage of the Hungarian unemployed by insurance benefit (received by only a quarter of the searching stock in 1997) cannot be explained by changes in the composition of unemployment observable in labour force survey data (including unemployment duration). The probability of active search (search other than through a state employment office) is found to be very similar for those receiving insurance and assistance benefit.

Pages: 34 pages
Date: 1999-09
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Citations: View citations in EconPapers (8)

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