2017
DOI: 10.3326/pse.41.3.4
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Patterns of welfare-to-employment transitions of Croatian Guaranteed Minimum Benefit recipients: a preliminary study

Abstract: teo matković, dinka caha: patterns of welfare-to-employment transitions of croatian guaranteed minimum benefit recipients: a preliminary study public sector economics 41 (3) 335-358 (2017)

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Cited by 3 publications
(3 citation statements)
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“…It is likely that poorer households' labor force participation rates are not much affected by the level of the guaranteed minimum benefit (GMB) either. While the marginal effective tax rate for some family configurations is high, it does not seem to factor much in transitions to employment in Slavonia (Matković and Caha, 2017). Repeated increases in minimum wages since 2016 have reduced this inactivity trap, as benefits have not been indexed (Matković 2018b).…”
Section: There Are No Major Work Disincentives From Social Security Ementioning
confidence: 99%
See 1 more Smart Citation
“…It is likely that poorer households' labor force participation rates are not much affected by the level of the guaranteed minimum benefit (GMB) either. While the marginal effective tax rate for some family configurations is high, it does not seem to factor much in transitions to employment in Slavonia (Matković and Caha, 2017). Repeated increases in minimum wages since 2016 have reduced this inactivity trap, as benefits have not been indexed (Matković 2018b).…”
Section: There Are No Major Work Disincentives From Social Security Ementioning
confidence: 99%
“…In Slavonia, among GMB recipients, there is a slightly higher share of people able to work than in other regions (most other beneficiaries being children or people with disabilities, often from the same household). Recipients of the GMB who are unemployed, face several barriers that hinder transition towards the labor market, including low education, care responsibility (towards children, spouses and the elderly) and low mobility (car ownership disqualifies someone from the GMB program if there is any public transport), resulting in annual transitions to employment of only about 20 percent (Matković and Caha, 2017). However, beneficiaries are seldom exclusively targeted by ALMPs, training or social services, and no such record is kept.…”
Section: Activating Guaranteed Minimum Benefit (Gmb) Beneficiariesmentioning
confidence: 99%
“…There is a general consensus among economists that the provision of social protection-meaning, putting in place various instruments for assuring income security is an economic and social necessity [11]. Indeed, the rational choice of spending the free time as a free rider or accepting the minimum wage guaranteed (the higher it is, the bigger the incentive to work) for the skills it requires (the lower they are, the bigger the incentive the employment barriers), could create an inactivity trap [12][13][14][15]. The danger is that a generous social assistance "may lock low-skilled workers into persistent low-wage employment", generating a potential disincentive to work [16][17].…”
Section: Introductionmentioning
confidence: 99%