Based on the empirical analysis of aggregate data on labor market flows, the report finds that during the first year after entering into force, changes of labor market regulation helped to reduce segmentation and to increase flexibility. In that period, the proportion of new hires as well as first-time hires under the fixed-term contract was reduced, especially for young people (age category 15- 29 years), suggesting that the changes helped reducing the segmentation. The increase of flexibility has been shown in an increase of the reallocation rate of the unemployed.
C.02 Editorial board of a national monograph
COBISS.SI-ID: 13456033The study analyses the effects of an increase in the generosity of unemployment benefits on the duration of unemployment in Slovenia. Using registry data on the universe of Slovenian unemployment benefit recipients, the analysis exploits legislative changes that selectively increased the replacement rates for certain groups of workers while leaving them unchanged for others. Applying this quasi-experimental approach, we find that increasing the replacement rate significantly decreased the hazard rate of the transition from unemployment to employment. Interestingly, the implementation of these legislative changes that increased the generosity of benefits coincided with a period of increased aggregate outflows from unemployment.
B.03 Paper at an international scientific conference