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Increasing labour market activity of poor and female: Let’s make work pay in Macedonia

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  • Mojsoska-Blazevski, Nikica
  • Petreski, Marjan
  • Petreska, Despina

Abstract

The objective of this paper is to simulate the effects of two alternative social policies – individual and family in-work benefits – on labour market choices in Macedonia, with special reference to poor and females. To that end, we use ex-ante analysis relying on a combination of a tax and benefit micro-simulation model for Macedonia (MAKMOD) and a structural model for the labour supply, both utilizing the 2011 Survey of Income and Labour Conditions. Results suggest that the proposed reforms will result in sizable effects for the working choices of Macedonians. The family in-work benefit is found to be more effective for singles and would lead up to 6 percentage points increase in employment. On the other hand, the individual in-work benefit works better for couples whereby employment would increase by 2.5 percentage points. In addition, the effects are found to be larger for poor and females, the categories that are most prone to inactivity in Macedonia.

Suggested Citation

  • Mojsoska-Blazevski, Nikica & Petreski, Marjan & Petreska, Despina, 2013. "Increasing labour market activity of poor and female: Let’s make work pay in Macedonia," MPRA Paper 57228, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:57228
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    Cited by:

    1. Bashevska, Marija, 2014. "Политиките На Пазарот На Труд И Сиромаштијата Во Македонија, 2008 - 2013 [Labour market, employment policies and poverty in R. Macedonia, 2008 - 2013]," MPRA Paper 57768, University Library of Munich, Germany.
    2. Figari, Francesco & Paulus, Alari & Sutherland, Holly, 2014. "Microsimulation and policy analysis," ISER Working Paper Series 2014-23, Institute for Social and Economic Research.
    3. Marjan Petreski & Nikica Blazevski & Blagica Petreski, 2014. "Gender Wage Gap when Women are Highly Inactive: Evidence from Repeated Imputations with Macedonian Data," Journal of Labor Research, Springer, vol. 35(4), pages 393-411, December.

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    More about this item

    Keywords

    in-work benefits; making work pay policies; reform of the social system; Macedonia;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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