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Employment subsidies in complex labour market programmes

Country of implementation
Hungary
General short description of the innovation
Labour market programmes provide targeted assistance to di?erent groups of disadvantaged persons to enter the labour market and ?nd a job. Programmes combine employment services and employment promotion (programme com-ponents) within a given period.
Target group
Total Population
Policy Field
  • employment
Type of Policy
  • public
Duration of the policy
2007
Scope of innovation
  • Scope: temporary
  • Spatial coverage: national
General description of (intended) objectives and strategies
Labour market programmes provide targeted assistance to di?erent groups of disadvantaged persons to enter the labour market and ?nd a job. Programmes combine employment services and employment promotion (programme components) within a given period. Programme components can only include services and subsidy schemes that are regulated by the Employment Act or its implementing regulations. / From January 1, 2007 a new active measure was introduced: the wage cost subsidy. This can be used exclusively in complex labour market programmes, and it provides a sum of up to 100 per cent of the total wage costs for up to three years. / Considering that the successful implementation of complex programmes requires adequate management capacities, in the new measure management and sta? costs are also eligible in addition to costs related to the target group. / The wage cost subsidy is awarded by the authority responsible for the given complex labour market programme (i.e. minister, director of job centre.) / / / / http://econ.core.hu/file/download/HLM2005/TheHungarianLabourMarket_2008_onefile.pdf, p157 /
Nature of the innovation-short-term perspective
targeted assistance to di?erent groups of disadvantaged persons to enter the labour market and ?nd a job through conplex labour market programmes
Nature of the innovation-long-term perspective
activation
Type of ideal-typical strategy for the innovation
  • others (activation)
Type of innovation
  • new policy, practice or measure
New outputs
  • subsidies/tax-credits (wage cost subsidy)
Intended target group
Disadvantaged persons
Working age population
  • care responsibilities (care for children [0-16/16+], for elderly or other family members) (parental leave during the past 12 months)
  • educational level (low/medium/high) (low)
  • employment situation (long-term unemployed)
  • family situation (married/separated/single) (single parent)
Employers-private institutional actors
employer of disadvantaged persons
Actors involved in policy-making/implementation and/or evaluation
  • agency or national social insurance body (authority responsible for the given complex labour market programme)
  • beneficiaries/users (disadvantaged persons)
  • central state (authority responsible for the given complex labour market programme)
  • employers (organised or individual) (of disadvantaged persons)
Clarification of the role of various actors
The wage cost subsidy is awarded by the authority responsible for the given complex labour market programme (i.e. minister, director of job centre.)
Intended output
  • subsidies/tax-credits (wage cost subsidy)
Did the innovation have any outcome related to job quantity?
promote employment of disadvantaged persons
Clarification of outcomes in terms of impacting resilience and labour market inclusion
Complex labour market programmes provide targeted assistance to di?erent groups of disadvantaged persons to enter the labour market and ?nd a job. Programmes combine employment services and employment promotion (programme components) within a given period. A new active measure was introduced: the wage cost subsidy which can be used exclusively in complex labour market programmes, and it provides a sum of up to 100 per cent of the total wage costs for up to three years.
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