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Abstract. The paper analyses the state of implementation of flexicurity policy components in the NMS and, by using panel regression analysis, estimates the impact of employment protection legislation, expenditures for active employment policies, participation in lifelong learning and net replacement rate on labour productivity and on long-term unemployment. The empirical analysis has shown that the labour markets in the NMS, on the overall, are not more rigid as compared to the EU-15; however, problematic remains low expenditure on active labour market policies, education and social protection, and the low participation in lifelong learning. NMS must, according to the results of the panel linear regression, improve their performance in the mentioned areas in order to improve their labour productivity and decrease long-term unemployment.Key words: flexicurity, labour market, labour productivity, long-term unemployment, European Union

The paper analyses the effects of a 2011 increase in the unemployment benefit replacement rate on the job-finding rate of Slovenian benefit recipients. Using registry data on the universe of Slovenian unemployment benefit recipients, we exploit 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, with an implied elasticity of the hazard rate with respect to benefit replacement rate being 0.7 to 0.9. The results also show that the increase of the unemployment benefit replacement rate does not affect the job-finding probability of jobseekers whose reason for unemployment is employer exit, and that the effects of the increase of replacement rate are present only upon exit to employment and not to inactivity.

The paper analyses the effects of a 2011 increase in the unemployment benefit replacement rate on the job-finding rate of Slovenian benefit recipients. Using registry data on the universe of Slovenian unemployment benefit recipients, we exploit 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, with an implied elasticity of the hazard rate with respect to benefit replacement rate being 0.7 to 0.9. The results also show that the increase of the unemployment benefit replacement rate does not affect the job-finding probability of jobseekers whose reason for unemployment is employer exit, and that the effects of the increase of replacement rate are present only upon exit to employment and not to inactivity.