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Odhad nákladov nezamestnanosti v podmienkach slovenskej ekonomiky
[Estimation of the Cost of Unemployment in Slovak Republic]

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  • Tomáš Domonkos
  • Brian König

Abstract

The aim of the presented paper is to estimate the cost of unemployment in the Slovak Economy. The cost of unemployment can be divided into a direct component, composed of decreasing government revenues due to reduced direct taxes and social contribution payments from the employees and the employers; increased public spending on unemployment benefi ts, social security and health insurance and finally increased expenditures on running the administration of unemployed persons and active labor market policies. The second part, consisting of indirect costs, is composed of one component, represented by the decreasing collection of indirect taxes. The analysis showed that the average estimated real monthly cost per one unemployed throughout the years 2008-2012 fall within the range from 416 euros to 588 euros.

Suggested Citation

  • Tomáš Domonkos & Brian König, 2015. "Odhad nákladov nezamestnanosti v podmienkach slovenskej ekonomiky [Estimation of the Cost of Unemployment in Slovak Republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(4), pages 498-516.
    • Handle: RePEc:prg:jnlpol:v:2015:y:2015:i:4:id:1032:p:498-516
    DOI: 10.18267/j.polek.1032
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    References listed on IDEAS

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    1. Mai Dao & Mr. Prakash Loungani, 2010. "The Human Cost of Recessions: Assessing It, Reducing It," IMF Staff Position Notes 2010/017, International Monetary Fund.
    2. Lee, Jim, 2000. "The Robustness of Okun's Law: Evidence from OECD Countries," Journal of Macroeconomics, Elsevier, vol. 22(2), pages 331-356, April.
    3. John F. Helliwell & Haifang Huang, 2014. "New Measures Of The Costs Of Unemployment: Evidence From The Subjective Well-Being Of 3.3 Million Americans," Economic Inquiry, Western Economic Association International, vol. 52(4), pages 1485-1502, October.
    4. Stratford Douglas & Howard J. Wall, 2000. "The revealed cost of unemployment," Review, Federal Reserve Bank of St. Louis, vol. 82(Mar), pages 1-10.
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    Cited by:

    1. Lucia Svabova & Marek Durica & Katarina Kramarova & Katarina Valaskova & Katarina Janoskova, 2019. "Employability and Sustainability of Young Graduates in the Slovak Labour Market: Counterfactual Approach," Sustainability, MDPI, vol. 11(16), pages 1-16, August.

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    More about this item

    Keywords

    unemployment; cost of unemployment; labor market; direct costs of unemployment; indirect costs of unemployment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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