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

Martina Lubyova and Jan van Ours
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Martina Lubyova: Slovak Academy of Sciences

No 97-071/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

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

Date: 1997-07-03
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Related works:
Working Paper: Work Incentives and the Probability of Leaving Unemployment in the Slovak Republic (1997)
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