OECD Economics Department Working Papers

ISSN :
1815-1973 (online)
DOI :
10.1787/18151973
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Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

 

Towards a More Inclusive Labour Market in Hungary You or your institution have access to this content

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Author(s):
Rafal Kierzenkowski1
Author Affiliations
  • 1: OECD, France

Publication Date
23 May 2012
Bibliographic information
No.:
960
Pages
37
DOI
10.1787/5k98rwqw3v8q-en

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A rapid decrease in unemployment is a short-term priority to limit social problems and reduce the risk of rising structural unemployment. To this end, strengthening labour market policies to sustain labour demand is key. The public works programme should remain temporary and become more focused on training. The authorities should also refrain from further raising the minimum wage. Fundamental structural reforms are needed in the medium term to raise one of the lowest participation rates in the OECD. This challenge is acute in the context of a rapidly ageing population. The authorities have started restructuring the tax/benefit system to make work pay and increase labour supply, yet additional efforts are needed to foster the inclusiveness of the labour market. Groups which are significantly under-represented in the labour market include the low-skilled, youth, the elderly, women of childbearing age, the disabled and the Roma. Structural measures are needed to develop part-time and other flexible forms of employment, reform family policies, ease the integration of people with disability into the labour market, better attune the education system to labour market needs, enhance the level of qualifications and skills at different ages, diminish disincentives to work at older ages and break the segregation of the Roma. This Working Paper relates to the 2012 OECD Economic Survey of Hungary (www.oecd.org/eco/surveys/hungary)
Keywords:
Hungary, benefit system, unemployment, labour force participation rates, labour market policies, minimum wage
JEL Classification:
  • J13: Labor and Demographic Economics / Demographic Economics / Fertility; Family Planning; Child Care; Children; Youth
  • J14: Labor and Demographic Economics / Demographic Economics / Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
  • J21: Labor and Demographic Economics / Demand and Supply of Labor / Labor Force and Employment, Size, and Structure
  • J26: Labor and Demographic Economics / Demand and Supply of Labor / Retirement; Retirement Policies
  • J32: Labor and Demographic Economics / Wages, Compensation, and Labor Costs / Nonwage Labor Costs and Benefits; Private Pensions
  • J65: Labor and Demographic Economics / Mobility, Unemployment, and Vacancies / Unemployment Insurance; Severance Pay; Plant Closings