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Long-term unemployment and short-term unemployment benefits: The changing nature of non-employment subsidies in Central and Eastern Europe

Author

Listed:
  • Scott Edwards

    (OECD, 2, Rue André Pascal, F-75775 Paris Cedex 16, France)

  • Tito Boeri

    (.G.I.E.R. Bocconi University, Via Salasco 5, I-20136 Milano, Italy)

Abstract

Non-employment rates in all central and eastern European countries have increased dranatically thoroughout the transition and are currently larger than those of the lowest income OECD countries. Non-employment benefits other than unemployment benefits are providing income support to this growing number of able-bodied individuals out of work. Under the present design of unemployment benefits and social assistance, there may be serious incentive problems related to the shift from unemployment benefits to other, means-tested, non-employment benefits and this shift occurs in transition countries at rather early stages of an unemployment spell; these incentive problems are bound to become particularly acute in a less inflationary environment.

Suggested Citation

  • Scott Edwards & Tito Boeri, 1998. "Long-term unemployment and short-term unemployment benefits: The changing nature of non-employment subsidies in Central and Eastern Europe," Empirical Economics, Springer, vol. 23(1/2), pages 31-54.
    • Handle: RePEc:spr:empeco:v:23:y:1998:i:1/2:p:31-54
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    Citations

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    Cited by:

    1. Micklewright, John & Nagy, Gyula, 1999. "Living standards and incentives in transition: the implications of UI exhaustion in Hungary," Journal of Public Economics, Elsevier, vol. 73(3), pages 297-319, September.
    2. Micklewright, John & Nagy, Gyula, 1999. "Living Standards and Incentives in Transition: the Implications of Unemployment Insurance Exhaustion in Hungary," CEPR Discussion Papers 2061, C.E.P.R. Discussion Papers.
    3. Flemming, J.S. & Micklewright, John, 2000. "Income distribution, economic systems and transition," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 14, pages 843-918, Elsevier.
    4. Randolph Luca Bruno, 2003. "Speed of Transition, Unemployment Dynamics and Nonemployment Policies: Evidence from the Visegrad Countries," LEM Papers Series 2003/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. John Micklewright & Gyula Nagy, 1997. "The Implications of Exhausting Unemployment Insurance Entitlement in Hungary," Papers iopeps97/8, Innocenti Occasional Papers, Economic Policy Series.
    6. Avram, Silvia, 2013. "Social assistance in Central and Eastern Europe: features and characteristics," ISER Working Paper Series 2013-19, Institute for Social and Economic Research.
    7. Amine Samir, 2016. "The Canadian Unemployment Insurance Generosity: Reflections from a Comparative Analysis," Comparative Economic Research, Sciendo, vol. 19(3), pages 133-145, September.
    8. Mirjana Dragièeviæ & Alka Obadiæ, 2001. "Unmeployment in the transition economies- causes and proposals," ERSA conference papers ersa01p282, European Regional Science Association.

    More about this item

    Keywords

    Unemployment benefits · replacement rates · social assistance;

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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