Material deprivation and employment status in post-transition: Evidence from North Macedonia

SEER ◽  
2021 ◽  
Vol 24 (1) ◽  
pp. 135-152
Author(s):  
Dimitar Nikoloski

Poverty and social exclusion are often associated with unemployment, but being employed is not always sufficient to provide decent living conditions for workers and their families. In this context, the aim of this article, drawing on SILC micro data, is to assess the underlying causes of severe material deprivation in North Macedonia from the point of view of employment status, particularly the differences between employed and unemployed workers. The results show that employed workers face a much greater risk of severe material deprivation if they are positioned in the so-called secondary labour market; while the unemployed with low capital accumulation and those living in households with low work intensity face the highest risks of all. North Macedonia’s adjustment mechanisms do help cushion the consequences, but the article concludes with several policy recommendations for additional action to reduce severe material deprivation covering: education and training; active labour market policies; unionisation and collective bargaining; wage subsidies and taxation; and a statutory minimum wage.

2020 ◽  
Author(s):  
Dimitar Nikoloski

Poverty and social exclusion are often associated with unemployment, but being employed is not always sufficient to provide decent living conditions for workers and their families. The ‘low-wage’ workers similarly as unemployed are often associated with an image of men and women struggling to support their families and living at risk of poverty and social exclusion. Dealing with the social stratification engendered from the employment status of workers in the post-transition countries represents a challenging task for the academics and policymakers. The aim of the paper is to assess the determinants of poverty in North Macedonia from the point of view of employment status, particularly the differences between low-paid and unemployed workers. We assess the factors affecting the probability of at-risk-of poverty status by estimating a logit model on cross-section data separately for employed and unemployed persons in 2015. The analysis draws from an examination of micro data from the Survey on Income and Living Conditions (SILC) whose main scope is to enable the compilation of statistics on income distribution, as well as indicators of monetary poverty. Besides other personal and household characteristics, being low-paid appears as the most important factor for at-risk-of poverty status among employed persons, while the low work intensity is the most responsible factor for at-risk-of poverty status among unemployed persons. In addition, our analysis reveals that the social transfers do not satisfactorily cover these categories, which assumes that we need a much broader arsenal of respective policy measures aiming to reduce poverty among the vulnerable labour market segments. The proposed policy recommendations cover the following areas: education and training, active labour market policies, unionisation and collective bargaining, wage subsidies and taxation and statutory minimum wage.


2020 ◽  
Vol 20 (1) ◽  
Author(s):  
Vanessa Puig-Barrachina ◽  
Davide Malmusi ◽  
Lucía Artazcoz ◽  
Xavier Bartoll ◽  
Eva Clotet ◽  
...  

Author(s):  
Manos Matsaganis

This chapter reviews the changes in labour market policies under conditions of harsh austerity and mass unemployment in Greece in 2010-2015. Three policy areas are covered: income support to the unemployed, active labour market policies, and employment protection legislation. We find that labour market policies in Greece have failed to rise to the challenge of harsh austerity and mass unemployment. A legacy of backwardness, neglect, and general lack of sophistication proved difficult if not impossible to overturn under the emergency conditions prevailing since 2010. Moreover, as regards the less controversial aspects of the structural reforms demanded by the country’s creditors under the bailout agreements (for instance, supporting job creation, upgrading the Public Employment Service, and improving the absorption, as well as the effectiveness of EU funding), the domestic actors’ preferred approach of passively adjusting to European funding opportunities, rather than genuinely puzzling for solutions, left no room for a more constructive engagement. The adverse effects of the resulting handicap are there for all to see.


2018 ◽  
Vol 10 (10) ◽  
pp. 3623 ◽  
Author(s):  
Francisco Guijarro

Macroeconomic indicators regarding employment have been gradually improved by southern European countries during recent years. However, the labour market still seems to be highly polarized across regions and some groups are persistently excluded from jobs recovery. This paper analyses the effectiveness of active labour market initiatives in the Valencian region, one of the worst-affected areas regarding unemployment in Spain. By using a large official database from the Valencian government, results of the probit model show that participating on active labour market initiatives have a positive impact on the probability of exiting unemployment, even after controlling for age, level of education and gender of candidates. The research also reveals that people aged 55 and older and females constitute the most vulnerable groups. Regarding women, only those with higher education increase their probability of finding a job.


2017 ◽  
Vol 12 (1) ◽  
pp. 68-79
Author(s):  
Dimitar Nikoloski ◽  
Ljupcho Pechijareski

AbstractDepressed labour market conditions in Macedonia manifested by high and persistent unemployment rate, strong segmentation and prevailing long-term unemployment is considered as a heritage of more than two decades long period of transition. Unemployment has a number of negative consequences such a decreased income which is assumed to influence the subjective experience of unemployment. The negative macroeconomic shocks in Macedonia have been mitigated due to the strengthened role of alternative labour market adjustment mechanisms such as: employment in the informal sector, emigration and inactivity. However, their impact on the unemployed workers’ perceptions of stress and future labour market prospects is less clear-cut. In this paper we use results from a survey carried out on a sample of unemployed workers in Macedonia in order to identify the psychological implications of unemployment by assessing the perceived stress and employment prospects with particular reference to the role of alternative labour market adjustment mechanisms.


2007 ◽  
Vol 202 ◽  
pp. 67-78 ◽  
Author(s):  
Jan C. van Ours

This paper examines compulsion in active labour market programmes (ALMP). When an unemployed worker has to participate in a programme in order to remain eligible for benefits there are two seperate effects. First, there is the treatment effect, i.e. the programme makes the worker more attractive for a potential employer or makes search more efficient, thus helping the unemployed worker to find a job more quickly. Second, there is the compulsion effect, i.e. because the worker has to attend the programme his value of being unemployed drops and he is stimulated to find a job more quickly. So, both effects induce the worker to find a job more quickly. The difference between the treatment effect and the compulsion effect concerns the quality of the post-unemployment job. The treatment effect improves the quality; the compulsion effect lowers the quality of post-unemployment jobs.


2013 ◽  
Vol 23 (1) ◽  
pp. 3-20 ◽  
Author(s):  
Tim Vlandas

There are competing theoretical expectations and conflicting empirical results concerning the impact of partisanship on spending on active labour market policies (ALMPs). This paper argues that one should distinguish between different ALMPs. Employment incentives and rehabilitation programmes incentivize the unemployed to accept jobs. Direct job creation reduces the supply of labour by creating non-commercial jobs. Training schemes raise the human capital of the unemployed. Using regression analysis this paper shows that the positions of political parties towards these three types of ALMPs are different. Party preferences also depend on the welfare regime in which parties are located. In Scandinavia, left-wing parties support neither employment incentives nor direct job creation schemes. In continental and Liberal welfare regimes, left-wing parties oppose employment incentives and rehabilitation programmes to a lesser extent and they support direct job creation. There is no impact of partisanship on training. These results reconcile the previously contradictory findings concerning the impact of the Left on ALMPs.


2018 ◽  
Vol 12 (3-4) ◽  
pp. 125-132
Author(s):  
Imola Cseh-Papp ◽  
Troy B. Wiwczaroski ◽  
Tünde Csapóné Riskó

Labour market policy includes active and passive labour market programmes, aiming to solve different problems. Active labour market programmes assist the unemployed to find jobs and thus return to the labour market. Passive labour market programmes assist the unemployed by providing various kinds of aid, easing social tensions. Public work can be considered to be an active labour market programme, assisting people who receive social care with income based on public beneficial work. Consequently, public work is justified by some on the basis that it is purported to have some kind of moral foundation, as well as because it supposedly shows results within a short time. Yet, the rationale behind using public work programmes to fight unemployment is contested. Detractors see them as being rather costly, questioning their success and arguing that their overall results are uncertain, especially in the long run. In short, there are in fact pros and cons to using public work, with opinions being rather divisive. This study summarises these pros and cons, analysing the relevant international and Hungarian literatures in the context of active labour market programmes. JEL Classification: I38


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