Work Incentives and Other Effects of the Transition to Social Assistance: Evidence from the Slovak Republic

Empirical Economics, Vol. 23, Issue 1/2, 1998

Posted: 31 Dec 1998

See all articles by Martina Lubyova

Martina Lubyova

Slovak Academy of Sciences - The Institute for Forecasting of the Slovak Academy of Sciences

Jan C. van Ours

Tilburg University - Department of Economics; University of Melbourne - Department of Economics

Abstract

In this paper we investigate whether the potential disincentive effects of the Slovak benefit system have an actual meaning. Using data from subsequent labor force surveys we study the determinants of the outflow from unemployment to a job and the determinants of the outflow to out of the labor force. We find that single unemployed, highly educated unemployed and unemployed living in the capital Bratislava have higher exit rates both to a job and to out of the labor force. The characteristic with a distinctly different effect on both exit rates is the previous labor market position. We also find that there are fluctuations in the hazard rate over the duration of unemployment. However, these fluctuations are not very informative. The direct indicators of the type of unemployment benefit do not affect the exit rates, neither do the indirect indicators like, for example, the presence of young children. Although there are potential disincentive effects in the Slovak benefit system we find no evidence that these potential effects materialize.

JEL Classification: C41, J64, J65

Suggested Citation

Lubyova, Martina and van Ours, Jan C., Work Incentives and Other Effects of the Transition to Social Assistance: Evidence from the Slovak Republic. Empirical Economics, Vol. 23, Issue 1/2, 1998, Available at SSRN: https://ssrn.com/abstract=122888

Martina Lubyova (Contact Author)

Slovak Academy of Sciences - The Institute for Forecasting of the Slovak Academy of Sciences ( email )

Šancová 56
Sancova 56
Bratislava, IL 811 05
Slovakia
421 7 39 52 56 (Phone)
421 7 39 50 29 (Fax)

Jan C. Van Ours

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

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

Paper statistics

Abstract Views
559
PlumX Metrics