Unemployment, Skills, and Incentives : An Overview of the Safety Net System in the Slovak Republic
The author studies the potential disincentive effects of unemployment insurance, and social assistance payments on the duration of unemployment in the Slovak Republic. For this purpose, she uses new, very detailed data on receipt of benefits from t...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/01/1687149/unemployment-skills-incentives-overview-safety-net-system-slovak-republic http://hdl.handle.net/10986/15750 |
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okr-10986-157502021-04-23T14:03:19Z Unemployment, Skills, and Incentives : An Overview of the Safety Net System in the Slovak Republic Sanchez-Paramo, Carolina UNEMPLOYMENT BENEFIT SYSTEMS UNEMPLOYMENT DURATION UNEMPLOYMENT INSURANCE SOCIAL ASSISTANCE PROGRAMS LABOR STATISTICS UNEMPLOYMENT RATES BEHAVIORAL OUTCOMES INCENTIVE PAYMENTS JOB SEARCHING PRIVATE SECTOR CONTROL SYSTEMS BURDEN SHARING POVERTY INCIDENCE SOCIAL REFORM SAFETY NET POLICIES AGED APPRENTICESHIP CHILD ALLOWANCES CONDITIONALITY EMPIRICAL ANALYSIS ENTITLEMENTS FAMILIES HIGH UNEMPLOYMENT HOUSEHOLD INCOME INCOME INFLATION INSURANCE LABOR FORCE LEGISLATION LIVING CONDITIONS PARENTS POVERTY LINE POVERTY REDUCTION PRIVATE SECTOR SAFETY SAFETY NET PROGRAMS SAFETY NET SYSTEMS SOCIAL ASSISTANCE SOCIAL POLICY SOCIAL SECURITY SOCIAL SUPPORT TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT RATES WAGES YOUNG WORKERS The author studies the potential disincentive effects of unemployment insurance, and social assistance payments on the duration of unemployment in the Slovak Republic. For this purpose, she uses new, very detailed data on receipt of benefits from the Unemployment Registry (1990-2000) and the Labor Force Survey (1996, 1999, and 2000). She employs a flexible methodology that makes it possible to identify behavioral changes that may occur as the quantity, and duration of the benefits change over time, as well as behavioral differences between recipients, and non-recipients. This approach, she argues, constitutes a more accurate test for the presence of incentive, and disincentive effects, than those presented before in the literature. She expands the scope of her analysis, to study the effect of receiving benefits on several outcomes in addition to exit from unemployment (for example, job seeking behavior, and duration of unemployment). She finds important behavioral differences between those who receive benefits, and those who do not. Recipients tend to spend more time unemployed, but they also look for employment more actively than their counterparts, have more demanding preferences with respected to their future jobs, and find jobs in the private sector more often. In addition, these jobs turn out to be better matches than those obtained by non-recipients (with the quality of the match measured by its duration). Moreover, the behavior of recipients varies tremendously depending on whether they are actually receiving benefits, or not. Once their benefits are exhausted, they exit the Unemployment Registry at a higher rate, search more actively, and move into private sector jobs more often. So when these workers are used as their own control group, there is strong evidence that both unemployment insurance and social assistance, or support have important disincentive effects, not only on the duration of unemployment, but also on job seeking behavior, and on exit to employment. Analyzing the effect of unemployment insurance, and social assistance on poverty, the author concludes that these programs bear most of the burden in the fight against poverty. But this protection does not come free, since significant disincentive effects are associated with receiving benefits. Thus any reform plan should take into account both of these aspects of the programs, along with the government's goals for the programs. 2013-09-09T21:50:29Z 2013-09-09T21:50:29Z 2002-01 http://documents.worldbank.org/curated/en/2002/01/1687149/unemployment-skills-incentives-overview-safety-net-system-slovak-republic http://hdl.handle.net/10986/15750 English en_US Policy Research Working Paper;No. 2753 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Slovak Republic |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
UNEMPLOYMENT BENEFIT SYSTEMS UNEMPLOYMENT DURATION UNEMPLOYMENT INSURANCE SOCIAL ASSISTANCE PROGRAMS LABOR STATISTICS UNEMPLOYMENT RATES BEHAVIORAL OUTCOMES INCENTIVE PAYMENTS JOB SEARCHING PRIVATE SECTOR CONTROL SYSTEMS BURDEN SHARING POVERTY INCIDENCE SOCIAL REFORM SAFETY NET POLICIES AGED APPRENTICESHIP CHILD ALLOWANCES CONDITIONALITY EMPIRICAL ANALYSIS ENTITLEMENTS FAMILIES HIGH UNEMPLOYMENT HOUSEHOLD INCOME INCOME INFLATION INSURANCE LABOR FORCE LEGISLATION LIVING CONDITIONS PARENTS POVERTY LINE POVERTY REDUCTION PRIVATE SECTOR SAFETY SAFETY NET PROGRAMS SAFETY NET SYSTEMS SOCIAL ASSISTANCE SOCIAL POLICY SOCIAL SECURITY SOCIAL SUPPORT TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT RATES WAGES YOUNG WORKERS |
| spellingShingle |
UNEMPLOYMENT BENEFIT SYSTEMS UNEMPLOYMENT DURATION UNEMPLOYMENT INSURANCE SOCIAL ASSISTANCE PROGRAMS LABOR STATISTICS UNEMPLOYMENT RATES BEHAVIORAL OUTCOMES INCENTIVE PAYMENTS JOB SEARCHING PRIVATE SECTOR CONTROL SYSTEMS BURDEN SHARING POVERTY INCIDENCE SOCIAL REFORM SAFETY NET POLICIES AGED APPRENTICESHIP CHILD ALLOWANCES CONDITIONALITY EMPIRICAL ANALYSIS ENTITLEMENTS FAMILIES HIGH UNEMPLOYMENT HOUSEHOLD INCOME INCOME INFLATION INSURANCE LABOR FORCE LEGISLATION LIVING CONDITIONS PARENTS POVERTY LINE POVERTY REDUCTION PRIVATE SECTOR SAFETY SAFETY NET PROGRAMS SAFETY NET SYSTEMS SOCIAL ASSISTANCE SOCIAL POLICY SOCIAL SECURITY SOCIAL SUPPORT TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT RATES WAGES YOUNG WORKERS Sanchez-Paramo, Carolina Unemployment, Skills, and Incentives : An Overview of the Safety Net System in the Slovak Republic |
| geographic_facet |
Europe and Central Asia Slovak Republic |
| relation |
Policy Research Working Paper;No. 2753 |
| description |
The author studies the potential
disincentive effects of unemployment insurance, and social
assistance payments on the duration of unemployment in the
Slovak Republic. For this purpose, she uses new, very
detailed data on receipt of benefits from the Unemployment
Registry (1990-2000) and the Labor Force Survey (1996, 1999,
and 2000). She employs a flexible methodology that makes it
possible to identify behavioral changes that may occur as
the quantity, and duration of the benefits change over time,
as well as behavioral differences between recipients, and
non-recipients. This approach, she argues, constitutes a
more accurate test for the presence of incentive, and
disincentive effects, than those presented before in the
literature. She expands the scope of her analysis, to study
the effect of receiving benefits on several outcomes in
addition to exit from unemployment (for example, job seeking
behavior, and duration of unemployment). She finds important
behavioral differences between those who receive benefits,
and those who do not. Recipients tend to spend more time
unemployed, but they also look for employment more actively
than their counterparts, have more demanding preferences
with respected to their future jobs, and find jobs in the
private sector more often. In addition, these jobs turn out
to be better matches than those obtained by non-recipients
(with the quality of the match measured by its duration).
Moreover, the behavior of recipients varies tremendously
depending on whether they are actually receiving benefits,
or not. Once their benefits are exhausted, they exit the
Unemployment Registry at a higher rate, search more
actively, and move into private sector jobs more often. So
when these workers are used as their own control group,
there is strong evidence that both unemployment insurance
and social assistance, or support have important
disincentive effects, not only on the duration of
unemployment, but also on job seeking behavior, and on exit
to employment. Analyzing the effect of unemployment
insurance, and social assistance on poverty, the author
concludes that these programs bear most of the burden in the
fight against poverty. But this protection does not come
free, since significant disincentive effects are associated
with receiving benefits. Thus any reform plan should take
into account both of these aspects of the programs, along
with the government's goals for the programs. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Sanchez-Paramo, Carolina |
| author_facet |
Sanchez-Paramo, Carolina |
| author_sort |
Sanchez-Paramo, Carolina |
| title |
Unemployment, Skills, and Incentives : An Overview of the Safety Net System in the Slovak Republic |
| title_short |
Unemployment, Skills, and Incentives : An Overview of the Safety Net System in the Slovak Republic |
| title_full |
Unemployment, Skills, and Incentives : An Overview of the Safety Net System in the Slovak Republic |
| title_fullStr |
Unemployment, Skills, and Incentives : An Overview of the Safety Net System in the Slovak Republic |
| title_full_unstemmed |
Unemployment, Skills, and Incentives : An Overview of the Safety Net System in the Slovak Republic |
| title_sort |
unemployment, skills, and incentives : an overview of the safety net system in the slovak republic |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/01/1687149/unemployment-skills-incentives-overview-safety-net-system-slovak-republic http://hdl.handle.net/10986/15750 |
| _version_ |
1764429626408435712 |