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Papers by Milan Vodopivec

Transylvanian Review of Administrative Sciences

Can activation programs be considered a ‘magic wand’ that triggers a change of incentives, with l... more Can activation programs be considered a ‘magic wand’ that triggers a change of incentives, with little or no costs, and produces real gains in terms of improved job-finding rates? The paper reviews the literature on the experience of OECD countries with such programs in five areas: strengthening job-search requirements, compulsory participation in active labor market programs, stricter monitoring, and imposing sanctions. Programs are judged in terms of duration of unemployment, probability of finding a job, and post-unemployment outcomes such as the level of wages and quality of jobs. Our review finds strong evidence that activation programs can increase the job-finding rates of individuals receiving unemployment or social assistance benefits. At the same time, it cautions that programs may have adverse side effects, ranging from increased exits into inactivity to lower quality of post-unemployment jobs, as well as negative indirect effects on the job prospects of non-participants.

Revija za socijalnu politiku

Any opinions expressed here are those of the author(s) and not those of the institute. Research d... more Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper shou...

SSRN Electronic Journal, 2004

SSRN Electronic Journal, 2006

SSRN Electronic Journal, 2019

Economic and Business Review, 2019

Income transfers may generate work disincentives: if certain income payments are stopped when ind... more Income transfers may generate work disincentives: if certain income payments are stopped when individuals (re)enter employment, this creates disincentives for taking employment – so called “unemployment trap”. To make work pay, several countries have introduced policies – financial incentives – which enhance employment opportunities for marginal groups in the labor market. Such policies increase in-work incomes and so improve work incentives for those receiving only out-of-work incomes. This paper tries to shed light on two questions, first being how does “making work pay” work in Slovenia, compared OECD countries, and the second, should Slovenia introduce earnings supplements or other in-work arrangements in tackling possible unemployment trap. According to international comparison Slovenia does not “step-out”, when we look at net replacement rates. Slovenia, however, has not introduced a single active labor programs that would stimulate directly and financially unemployed to join ...

Combining information from the Firm Survey of Labor Costs with the information about claims filed... more Combining information from the Firm Survey of Labor Costs with the information about claims filed with the Guarantee Fund by workers whose employers defaulted on their severance pay obligations, the paper analyzes the so-called non-performance problem of severance pay – the fact that coverage, and thus legal entitlement, does not guarantee the actual receipt of the benefit – as experienced in Slovenia in 2000. The findings are threefold: (i) one-third of total obligations incurred by firms failed to be honored and only a small portion of defaulted severance pay claims was reimbursed by the Guarantee Fund; (ii) while both men and women seem to be equally affected, workers older than 40 were disproportionally represented among those whose severance pay claims failed to be honored; and, (iii) among firms that incurred severance pay liabilities, larger and more productive firms were more likely to observe their fiduciary obligations and pay them out. These findings corroborate the weakn...

Policy Research Working Papers, 2006

Policy Research Working Papers, 1999

The World Bank Economic Review, 1995

Journal of Public Economics, 2008

SSRN Electronic Journal, 2009

SSRN Electronic Journal, 2008

IZA Journal of Labor Policy, 2013

The paper analyzes key labor market and institutional features of developing countries that affec... more The paper analyzes key labor market and institutional features of developing countries that affect functioning of unemployment insurance: a large informal sector, weak administrative capacity, and large political risk. It argues that these countries should tailor an OECD-style unemployment insurance program to their circumstances, among others by relying on self-insurance (via unemployment insurance savings accounts), complemented by solidarity funding, as a key source of financing; by simplifying monitoring of job-search behavior and labor market status; and by piggybacking on existing networks to administer benefits. The paper also addresses the question whether developing countries should introduce unemployment insurance. JEL codes J65, J68