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New incentive system for those who have exhausted their unemployment benefit entitlement period to stimulate life-long learning and employability of disadvantaged groups

Country of implementation
Hungary
General short description of the innovation
New incentive system for those who have exhausted their unemployment benefit entitlement period to stimulate life-long learning (participants receive cash benefits + improve conditions) and employability of disadvantaged groups (favouring of older workers, incentive for job search).
Target group
Total Population
Policy Field
  • employment
Type of Policy
  • public
Duration of the policy
2003
Scope of innovation
  • Scope: structural
  • Budgets: n.a.
  • Number of intended beneficiaries: n.a.
  • Spatial coverage: national
General description of (intended) objectives and strategies
?In 2003 several measures were taken to counterbalance the negative effects of the former restrictions on the most disadvantaged groups of the population. One of the first promises of the new government was to elaborate a new incentive system for those who have exhausted their UB entitlement period and want to get jobs. In 2003 the Government announced several changes in the regulation of employment policy to stimulate life-long learning, employability of disadvantaged groups and better quality of work. A part of the new initiatives was aimed at the alleviation of the labour market situation of the older unemployed persons. The most important changes could be summarised as follows: / - Life-long learning: After January 2003 participants of training programs under a certain level of income receive special cash bene?ts. Higher cash bene?ts increase the motivation of the clients to participate in training. The aim of certain organizational changes was to improve the conditions of adult training. / - Employability of disadvantaged people: In May 2003 the government introduced a new scheme called ?job search incentive?. This bene?t can be provided for those people without jobs who have passed their unemployment bene?t entitlement period and co-operated with the employment of?ce. The other scheme runs under the title ?job ?nding incentive?. A modest sum will be provided for those who ?nd employment before their job search incentive period ends. Both initiatives imply a positive discrimination in favour of older workers. / Local authorities are required to organise public works for the unemployed. Public works are co-financed by the local authorities and the Employment Office. For those above the age of 45 as much as 90 per cent of the total costs of the public work schemes could be financed by the Employment Office. In the case of public works in the field of health care, cultural / services, education and environment protection the maximum length of the entitlement period is 1.5 years. The respective figures for those under 45 are 70 per cent and 1 year." / (http://econ.core.hu/file/download/HLM2004/TheHungarianLabourMarket_2004_onefile.pdf, pp.33-34) /
Nature of the innovation-short-term perspective
New incentive system for those who have exhausted their UB entitlement period and want to get jobs
Nature of the innovation-long-term perspective
Stimulate life-long learning and employability of disadvantaged groups
Type of ideal-typical strategy for the innovation
  • flexicurity
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • benefit eligibility (new incentives for those who have exhausted their unemployment benefit entitlement period and want to get jobs)
  • services (public work)
  • training schemes (special cash bene?t for participation in training)
Intended target group
Unemployed (older, long-term)
Working age population
  • employment situation (unemployed)
Actors involved in policy-making/implementation and/or evaluation
  • agency or national social insurance body (Job Centres)
  • beneficiaries/users (unemployed)
Intended output
  • benefit eligibility (new incentives for those who have exhausted their unemployment benefit entitlement period and want to get jobs)
  • services (public work)
  • training schemes (special cash bene?t for participation in training)
Did the innovation have any outcome related to job quantity?
increase employability of unemployed
Intended and unintended outcomes
n.a.
Clarification of outcomes in terms of impacting resilience and labour market inclusion
/ New incentive system for those who have exhausted their unemployment benefit entitlement period and want to get jobs to stimulate life-long learning (training participation) and employability of disadvantaged groups. A part of the new initiatives was aimed at the alleviation of the labour market situation of the older unemployed persons. /
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