Long-Term Unemployment, Social Assistance and Labor Market Policies in Romania

Posted: 23 Oct 1998

See all articles by John S. Earle

John S. Earle

George Mason University - Schar School of Policy and Government; IZA Institute of Labor Economics

Catalin Pauna

University of Essex

Abstract

Long-term unemployment in Romania has grown in both absolute and relative terms in the last few years, leading to increased expenditures--both absolutely and in relation to unemployment benefits--for the support allowance and social assistance programs and for pensions to labor force drop-outs. The paper uses a variety of data sources, including registration information, labor force surveys, and our own survey of registered unemployed (SRU) to describe these trends in the characteristics of Romanian unemployment and to examine differences across unemployment benefit (UB) and short-term and long-term support allowance (SA) recipients. We employ the data to estimate the transition flow probability from the UB to the SA program; discuss the work incentives, income maintenance effects, and public costliness of the labor market and social insurance (including pension and disability) policies; and investigate the effects of the policies and of other characteristics of the unemployed and the areas where they live on the hazard for the escape rate from unemployment for UB and SA recipients separately.

JEL Classification: J4, J6

Suggested Citation

Earle, John S. and Pauna, Catalin, Long-Term Unemployment, Social Assistance and Labor Market Policies in Romania. Available at SSRN: https://ssrn.com/abstract=123408

John S. Earle (Contact Author)

George Mason University - Schar School of Policy and Government ( email )

3351 Fairfax Drive
MS 3B1
Arlington, VA 22201
United States
703-993-8023 (Phone)

HOME PAGE: http://earle.gmu.edu

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Catalin Pauna

University of Essex ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
1,177
PlumX Metrics