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THE HUNGARIAN LABOUR MARKET 2007. (2007). Fazekas, Karoly.
In: The Hungarian Labour Market Yearbooks.
RePEc:has:lmbook:2007.

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  1. Out-migration and attrition of physicians and dentists before and after EU accession (2003 and 2011). The case of Hungary.. (2016). Varga, Júlia.
    In: Budapest Working Papers on the Labour Market.
    RePEc:has:bworkp:1604.

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  2. Monthly Report No. 7/2008. (2008). Richter, Sandor ; Podkaminer, Leon ; Szabo, Marton .
    In: wiiw Monthly Reports.
    RePEc:wii:mpaper:mr:2008-07.

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  1. 19PursuanttoArticle5(3)point b) of Commission Regulation No 2204/2002 of 12 December 2002 on the application of Articles 87 and 88 of the EC Treaty to State aid for employment “the worker or workers must be entitled to continuous employment for a minimum of 12 months”. This is most likely fulfilled if funding is available for 12 months. Nevertheless, the above provision can also be understood as the workers are entitledto12monthssubsidised employment.
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  2. 2.2.1. The Start Programme The Start Programme was launched on October 1, 2005. The programme covers young people under the age of 25 years or – in the case of people with mária frey 142 higher education – 30 years who finished or temporarily left school and entered their first job.10 Their employers are eligible for a subsidy during a period of 2 years. The subsidy takes the form of a reduction of social insurance contributions based on universal entitlement: employers have to pay (monthly) 15% of the eligible wage as a contribution in the first year, and 25% in the second year. The reduction can be used for wages equalling up to 150% of the minimum wage for people aged less than 25 years, or 200% in the case of young graduates up to the age of 30. Nevertheless, this does not mean that the actual wage cannot be higher than this amount, only the subsidy is capped at these levels.
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  3. 2.2.2. Increasing employment and promoting flexibility From January 2006 micro-, small- and medium-sized enterprises and NGOs with less than 250 employees are exempt from the employer’s contributions if they hire new workers who have been registered unemployed for at least 3 months.11 Thereduction is for one year during which the new workers should be retained and their employment should be maintained for an additional year. The discount covers the fixed-sum health insurance contribution, the social security contribution payable by the employer and the employer’s contribution for unemployment insurance. The basis for the reduction shall be up to 130% of the minimum wage for full-time employees and correspondingly less for part-time workers. Based on data from the first 6 months of the year, 7723 people who were unemployed for more than 3 months found work as a result of this new scheme.
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  4. 2.2.3. Expanding the Start Programme Based on the positive experiences of the Start Programme, with the support of the European Social Fund the Programme is expanded from 2007. – In the framework of the Start Plus programme for people returning to work after child care or caring for a next of kin the statutory contributions payable by the employer are partly covered by the Labour Market Fund. – The Start Extra Programme aims to provide assistance to return to work for people in long term unemployment who face difficulties in the labour market because of their age or because they live in deprived areas. In their casetheLabourMarketFundfullycoverstheemployer’scontributionsinthe first year and partly in the second year.
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  5. 20/2005. (II.11.) Support for the employment of unemployed persons aged 50 years and over Unemployed persons aged 50 years and over Between 50–100% of the health care and pension contributions, employers’ contributions and fixed-sum health insurance contributions payable by the employer.
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  6. 6 The rules concerning the jobsearch agreement are set out in MoEL regulation 18/2005 (October18)anditsamendment by MoEL regulation 24/2005 (December 27). Reintegration programme to promote taking up work mária frey 138 ument can be modified or amended by mutual agreement of the individual and the job-centre if: – any change in the conditions of the job-seeker prevents compliance with the terms of the agreement or to fulfil the tasks and requirements specified in it, or – the job-seeker wishes to modify the means and methods of job-search specified in the document.
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  7. 6. Wage Survey Database The Employment Office (and its legal predecessors) has conducted since 1992, once a year, a representative survey to investigate individual wages and earnings. Thesurveyusesanenormoussampleandisconducted at the request of the Ministry of Economic Affairs (formerly: Ministry of Labour and Ministry of Social and Family Affairs). The reference month of data collection is the month of May every year, but for the calculation of the monthly average of irregularly paid benefits (beyondthebasewage /salary),thetotalamountofsuch benefits received during the previous year is used. In the competitive sector, initially data collection only covered companies of over 20 persons; in this group it is incumbent on all companies to provide information, but the sample only includes employees born on certain days.
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  8. 6/1996 (VII.16.) Article 11/A Support for the temporary agency work of jobseekers Public interest company that employs 50 persons who have been registered unemployed for at least 3 months, young unemployed or unemployed persons aged 50 years and over A fixed-term work contract for at least 200 days; temping the workers for third parties; the temping fee reaches at least the total wage costs of the minimum wage. One unemployed person is eligible for the subsidy once in any 2 year period. The temporary work agency has not been fined due to the breach of labour regulations with fines reaching the amount of HUF 100,000 or HUF 500,000 in the previous 2 years. Up to 50% of the wage costs of the monthly wage agreed in the fixed-term work contract, but up to 150% of the minimum wage at the time of the claim.
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  9. 6/1996 (VII.16.) Article Name of the measure Scope Conditions Level/Amount Length Legal basis mária frey 152 Aid for the providers of employment services Non-profit companies if they provide labour market and job information free of charge in disadvantaged geographical areas or for disadvantaged people; companies that provide advice about work and jobs, career orientation, vocational rehabilitation and psychological support for jobseekers on a local/regional basis or for jobseekers upon recommendation of the personal advisers. Service providers can apply for funding. Providers are eligible if they have been providing the continuous service for at least 1 year; agree to maintain the physical and human conditions and level of service provision; ensures adequate and lawful management of information and personal data. Non-repayable grant, the exact amount is set out in the official decision. Up to 3 years, as set out in the official decision.
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  10. 6/1996 (VII.16.) Articles 12–15. Support for parttime employment The part-time employment of persons in registered unemployment for at least 3 months, persons living as single adults looking after a child or children under 14 years or receiving carer’s allowance Part-time employment equivalent to 50–75% of full time employment, continue employment after the end of the subsidy for at least the duration of its payment, The employer has not made redundant any workers in similar jobs, and has not been fined due to the infringement of labour regulations. 75% of wage costs and/or up to 100% of the costs of commuting that are borne by the employer.
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  11. 6/1996 (VII.16.) Articles 16–17. Scheme to promote access to work experience of young persons Regular employment of young persons Fixed-term employment for at least 360 days, giving access to adequate work experience. If the cumulated sum of the subsidy exceeds the de minimis threshold then the employment should be continued for at least the duration of the payment. 50–100% of the wage, the fixed-sum insurance contribution (in case the subsidy reached 100%, for people with no qualifications up to 150%, secondary education up to 200% and higher education 250% of the minimum wage) For the period of employment but up to 360 days Government regulation No.
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  12. 6/1996 (VII.16.) Articles 18/B-18/ E
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  13. 6/1996 (VII.16.) Articles 21/A-21/ B Support for the mobility of workers Contribution to the costs of commuting between towns Persons who have been in unemployment for at least 6 months, or 3 months in the case of young persons or disabled persons. The employer has not made redundant any workers in similar jobs in the previous 6 months.
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  14. 6/1996 (VII.16.) Articles 26/G Funding of labour market programmes A combination of employment aid and services for employers, employees and the target group of the programme.
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  15. 8 Ministry of Social Affairs and Labour: Proposal for the Policy Management Meeting on the Amendment of Act IV of 1991 on Job Assistance and UnemploymentBenefitsAugust, 2006, Budapest.
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  16. 8. HCSO Census Data The largest data collection of the Central Statistical Office is the population and housing census, covering the entire population of the country. The reference date of the last census was 0 o’clock on February 1, 2001. The census data published refer to this survey, though regarding the most important characteristics, with the help of the data of the 1980 and the 1990 census respectively, it is possible to study the changes occurred in the last decades. The data of the previous censuses – within certain limits – have been adjusted according to the concepts of the last census (e.g. the data on employment, employers of the 1980 and the 1990 census are reflecting to the definitions, registers of 2001).
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  17. 85/2004. (IV. 19.) Assistance for business start-up of job-seekers Persons receiving job-search benefit who are not offered adequate jobs by the job centre Proven entrepreneurial activity Assistance equals to the amount of the job-search benefit, up to 50% contribution to the costs of professional consultancy, up to 50% contribution to the collateral costs.
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  18. 9 The detailed rules are now more often published in the Ministry of Labour regulation no.6/1996(VII.16)onemploymentaidandaidtomitigatethe effectsofcrisissituationsonthe labour market. mária frey 140 More significant changes took place on January 1, 1997 when: – the subsidy for part-time employment was phased-out – and new measures were introduced: • support for the job-creation of self-employed persons, • subsidy for the protection of employment: a) in the form of capital grants and b) subsidy for the part-time employment of certain groups of employees, • and compensation for employment-related contributions.
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  19. 9–12 months Act CXXIII. of 2004, articles 9– 16 Government regulation no.
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  20. A significant number of people were channelled out from unemployment by the active labour-market measures. Between 1993–2005 the average number of participants in active measures was between 75–116 thousand each year (table 7). This corresponds to 2–3% of the economically active population. This also means that during this period the unemployment rate, which fluctuated between 9–11%, would have been that much higher had jobless people or people threatened by redundancy not received preventive or active support to remain or return to the labour market.
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  21. According to the call for proposals (the maximum aid intensity is 80%) According to the call for proposals Act IV of 1991.
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  22. AccordingtothelabourforcesurveyoftheCentralStatisticalOffice,in1992 37%ofjob-seekingunemployedmenandapproximately40%ofunemployed women were not covered by assistance, and the same figure increased to 64% among men and 66.4% among women by 2004.
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  23. Act IV of 1991.
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  24. Act IV of 1991.
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  25. Act IV of 1991. Article 18/A Ministry of Labour Regulation No.
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  26. After the accession of Hungary to the EU (01.05.2004.) their is no need to ask for work permits for the citizens (and their family members) from the Czech Republic, Estonia, Poland, Latvia, Lithuania, Slovakia and Slovenia, but their is a reporting obligation of the employers for registration when they start to work. The reporting obligation doesn’t refer to the employment of the citizens of the UK, Ireland, Sweden, Cyprus and Malta. The citizens of the other member states of EU-15 in case of certain conditions may obtain „green card” certificate which entitles them to undertake any job in Hungary without work permissions. Source: FH, based on the reports of the county Labour Centres.
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  27. Andren, D., J. Earle and D. Sapatoru (2004): The EffectsofSystemicReformsontheReturntoSchooling: Evidence from Romania 1970–2000, August, ACCESSLAB European 5th Framework Program, WIFO Institut, Vienna, www.wifo.ac.at Bayard, K. and Troske, K. (1999): Examining the employer -sizewagepremiuminthemanufacturing,retail trade,andserviceindustriesusingemployer-employee matcheddata.AmericanandEconomicAssociationPapers and Proceedings, Vol. 89, No. 2, pp. 99–103.
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  28. Article 13 (3) Ministry of Economy regulation no. 30/2000. (IX.15.) articles 21–25 Income replacement assistance for participants of labour market services Unemployed persons who participate in collective jobsearch activities offered by the local office of the job centre (i.e. jobseekers’ club) or are in intensive job-search. The length of the activity is at least 15 days in the case of jobseekers’ club and 5 days in the case of intensive jobsearch The minimum amount of the unemployment benefit at the time of claiming the assistance.
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  29. Article 14 Ministry of Labour Regulation No. 6/1996 (VII.16.) Articles 1–9 Support for training aid for unemployed persons with disability The costs of training placements of unemployed persons with disabilities in the training courses subsidised by the Labour Market Fund.
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  30. Article 15 Ministry of Labour Regulation No. 6/1996 (VII.16.) Article 10 Assistance for business start-up of disabled jobseekers At least 40% loss of working capacity The unemployed person is not entitled to old-age, accidentrelated pensions, regular social benefit, transitional benefit, miners’ impairment benefit. Eligibility for job-search benefit is not a condition. Assistance equals to the amount of the job-search benefit (if the person is not eligible for job-search benefit, then the minimum amount of the benefit), up to 50% contribution to the costs of business consultancy, up to 100% contribution to the costs of necessary training, up to 50% contribution to the collateral costs.
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  31. Article 15 Ministry of Labour Regulation No. 6/1996 (VII.16.) Article 10 Ministry of Labour Regulation No. 11/1998 (IV.29.) article 6 Assistance for self-employment Persons who have been unemployed for at least 3 months and would like to become self-employed. Eligible persons should submit a business plan, they should contribute at least 20% own resources to the investment and have adequate financial guarantees to repay the loan. Up to HUF 3 million repayable, interest-free capital loan, cost of business consultancy The grant should be repaid starting from the 13th month after the receipt of the full sum in not more than 60 equal instalments indicated by the job centre.
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  32. Article 16 Ministry of Labour Regulation No. 6/1996 (VII.16.) Article 11 Support for community work Regular employment of unemployed persons referred to the employer by the job centre. Represents a net increase in the number of employees from the previous month (except in the case of people aged 45 years and over); The employer does not receive payment for the same service or subsidy for the same person from other sources (e.g. from the local authority), funding can be granted to employment related expenditure of non-business activities. The employer has not made redundant any workers in similar jobs and no fines were imposed because of infringement of labour regulations. Up to 70% of the direct expenditure of employment, up to 90% in the case of people aged 45 years and over or employment by the local Roma government. The Steering Committee of the Labour Market Fund or the county labour council might extend it to 90% and 2 years for other target groups as well.
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  33. Article 18 Ministry of Labour Regulation No. 6/1996 (VII.16.) Article 18/A Aid to mitigate the negative effects of collective redundancies Employers making collective redundancies The employer has initiated consultations on the collective redundancy, agrees to set up and support the activity of outplacement committees in the affected branches, and agrees to submit a written financial report and evaluation on the use of the grant. The application should be submitted prior to the notification of the employees on their dismissal. Up to HUF 1 million/committee, non-repayable (the actual amount depends on the employment situation of the area, the number of employees affected by the collective redundancy and the amount of available funding). The grant can be used for the operational costs of the Outplacement Committee. Grant to be used within 12 months Ministry of Labour Regulation No.
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  34. Article 19 Ministry of Labour Regulation No. 6/1996 (VII.16.) Article 19 Government regulation no.
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  35. As of March 19, 1998: – in the framework of mobility support, in addition to commuting, the costs of transportation of workers, accommodation and recruitment are also eligible for funding.
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  36. Assistance: for up to 1 year after exhausting the jobsearch benefit Collateral: up to 1 year Act IV of 1991.
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  37. Assistance: for up to 6 months after exhausting the jobsearch benefit Collateral: up to 1 year Act IV of 1991.
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  38. Atthebeginningof1993anewtypeofunemploymentassistancewasintroducedbyActIIIof1993onSocialAdministrationandSocialAssistance; the income replacement allowance for those who exhausted their entitlement for unemployment benefit. This was phased out from May 1, 2000. Since then, the only form of financial assistance for people in long term unemployed is the regular social allowance.
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  39. Blanchard, O. J. and Katz, L. F. (1992): “Regional Evolutions”, Brookings Papers on Economic Activity, No. 1, pp. 1–61.

  40. Blanchflower, D. and A. Oswald (1994): The Wage Curve; MIT Press, Cambridge, Massachusetts.

  41. Blanchflower, D. and A. Oswald (2005): “The wage curve reloaded”, NBER Working Paper no. 11338, National Bureau of Economic Research.

  42. BlauF.,Simpson,P.andAndersonD.(1998):Continuing Progress? Trends in Occupational Segregation in the United States over the 1970s and 1980s. Feminist Economics, Vol. 4, pp. 29–71.

  43. Brunello, G., S. Comi and C. Lucifora (2000): The College Wage Gap in 10 European Countries: Evidence from Two Cohorts, IZA Discussion Paper, No 228, Bonn.

  44. By the end of 1996 this list was amended only at one point: as of July 1, 1995 the funding of early retirement from the Employment Sub-fund was terminated.
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  45. Carbonaro, W. (2002): Cross-national Differences in the Skills-Earnings Relationship: The role of Skill Demands and Labour Market Institutions, Department of Sociology, University of Notre Dame, November, mimeo, Notre Dame IN.
    Paper not yet in RePEc: Add citation now

  46. Christev, A. and Fitzroy, F. (2002): Employment and wage adjustment: insider-outsider control in a Polish privatisation panel study. Journal of Comparative Economics, Vol. 30, pp. 251–275.

  47. Cyprus2 350 Cyprus pound 600 2004.06. 362 631 2005.04. 362 631.44 2005.04.
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  48. D9/D1D5/D1D9/D5 statistical data 200 Table 6.9: Average earnings in the national economy by forms of control, broken down to manual and non-manual workers, by genders, HUF/capita, month, 2005 Forms of control Average earnings Manual Non-manual Together male female together male female together male female together Enterprise 75,797 69,220 71,605 111,000 105,002 108,831 82,993 71,957 76,346 Joint stock company 147,111 100,383 134,520 361,039 221,966 282,125 212,185 174,376 197,212 Company limited 118,418 91,133 109,398 281,095 184,903 234,919 155,993 124,852 144,401 Cooperative 101,623 75,790 94,211 219,856 160,058 174,039 122,646 129,543 125,939 Other 85,517 73,675 81,680 225,320 154,766 185,679 113,200 105,932 110,368 Budgetary institutions 109,742 87,834 96,256 246,803 175,067 190,515 202,955 160,122 170,856 Total 117,618 88,386 107,504 283,327 182,675 216,856 168,390 146,740 157,770 Source: FH-BT.
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  49. Damijan, J. and Kostevc, C. (2002): The Impact of European Integration on Adjustment Pattern of Regional Wages in Transition Countries: Testing Competitive Economic Geography Models; LICOS Discussion Paper 118.

  50. Danny, K., Colm, H. and V. O’Sullivan (2004): Education, Earnings and Skills: A Multi-Country Comparison, The Institute for Fiscal Studies, WP04/08, Dublin.
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  51. Darling-Hammod L. (1999): Teacher Quality and Student Achievement. A Review of State Policy Evidence. Research Report. Center for the Study of Teaching Policy, University of Washington.
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  52. Data collection has covered companies of 10-19 since 1996, and companies of 5-9 have been covered since 1999, where the companies actually involved in data collection are selected at random (ca. 20 per cent) and the selected ones have to provide information about all their full-time employees. Data on basic wages and earnings structure can only be retrieved from these surveys in Hungary, thus it is practically these huge, annually generated databases that can serve as the basis of the wage reconciliation negotiations conducted by the social partners. In the budgetary sector all budgetary institutions provide information, regardless of their size, in a way that the decisive majority of the local budgetary institutions – the ones that are included in the TAKEHcentralpayrollaccountingsystem-provide fully comprehensive information, and the remaining budgetary institutions provide information only abouttheiremployeeswhowerebornoncertaindays (regarded as the sample).
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  53. Data has only been collected on the professional members of the armed forces since 1999.
    Paper not yet in RePEc: Add citation now

  54. Dobbelaere, S. (2001): Insider Power and Wage Determination in Bulgaria, An Econometric Investigation. LICOS Discussion Paper 111.

  55. Eberts, R. W. and Schweitzer, M. E. (1994): Regional wageconvergenceanddivergence:adjustingwagesfor cost-of-living differences. Economic Review, Federal Reserve Bank of Cleveland, No. 2, pp. 26–37.
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  56. Eligibility is proven with the Start-card issued by the tax authority. All young people aged less than 25 years (in the case of people with higher education 30 years) who enter their first job or paid internship are entitled to claim this card provided they finished or interrupted their studies. Between October 1, 2005 and August 28, 2006 32,865 young people applied for the card and 9,000 people entered employment using the discount provided by the Start Programme.
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  57. Fazekas Károly (2005): A hazai és külföldi tulajdonú vállalkozásokterületikoncentrációjánakhatásaafoglalkoztatás és munkanélküliség területi különbségeire [The effect of the regional concentration of domestic and foreign enterprises to the regional differences of employment and unemployment]. In: Fazekas Károly (ed.): A hely és a fej. Munkapiac és regionalitás Magyarországon. MTA Közgazdaságtudományi Intézet, Budapest.
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  58. Fazekas Károly and Németh Nándor (2005): A regionális különbségek csökkentése [Reducing the regionaldifferences ].In:Amagyarfoglalkoztatáspolitika átfogóértékeléseazEurópaiFoglalkoztatásiStratégia kontextusában, az elmúlt öt év tapasztalatai alapján [A comprehensive assessment of five years of Hungarian labour market policies, in the context of the European Employment Strategy] (Head of research: Köllő János). http://econ.core.hu/kutatas/projekt.html Galasi Péter (2002a): Fiatal diplomások a munkaerőpiacon a tömegesedés időszakában, Educatio, No. 2, pp. 227–236.
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  59. Figure 11.1: Minimum wage, average gross earnings = 100 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Monthly amount of minimal wage 20062004200220001998199619941992 20 30 40 50 Average gross earnings statistical data 226 Table 11.2: National agreements on wage guidelines, previous year = 100* Year ÉT Recommendation Actual indexes Minimum Maximum Public sector Corporate sector 1992 113.0 128.0 120.1 126.6 1993 110.0–113.0 125.0 114.4 125.1 1994 113.0–115.0 121.0–123.0 127.0 123.4 1995 – – 110.7 119.7 1996 113.0 124.0 114.6 123.2 1997 114.0 122.0 123.2 121.8 1998 113.5 116.0 118.0 118.5 1999 112.0 115.0 119.2 114.8 2000 108.5 111.0 112.3 114.2 2001 … … 122.9 116.3 2002 108.0 110.5 129.2 113.3 2003 4.51 117.5 108.9 2004 107.0 108.0 100.4 109.3 2005 106.0 112.8 106.9 2006 104.0 105.0 1 Real wage growth. * Gross average wage increase: actual rates and recommendations by the Interest Reconciliation Council. Source: KSH, Ministry of Employment and Labour.
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  60. Figure 4.5: Ratio of employees, members of cooperatives, members of other partnerships, self-employed and assisting family members, per cent 0 20 40 60 80 100 0 20 40 60 80 100 Self employed and assisting family members Members of other memberships Members of cooperatives Employees statistical data 174 Table 4.10: Employees of the corporate sector by firm size, per cent Year Less than 20 20–49 50–249 250–999 More than 1000 number of employees 1998 8.2 5.8 25.1 26.4 34.4 2000 20.2 7.0 23.5 22.5 26.8 2002 21.6 14.0 21.5 20.1 22.9 2003 23.0 15.3 20.5 19.3 21.8 2004 23.6 14.8 21.3 18.3 22.0 2005 27.0 15.0 20.5 17.5 20.0 Note: –1999: firms employing 10 or more workers; 2000–2001: firms employing 5 or more workers. Source: FH BT.
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  61. Figure 5.1: Registered and LFS, LFS unemployment rates 3 6 9 12 15 LFS unemployed Registered unemployed 20052004200320022001200019991998199719961995199419931992 per cent statistical data 178 Table 5.2: Unemployment rate by age and gender and % of long term unemployed Year Unemployment rate Of which: 15–24 ages Share of long term unemployed1 Males Females Together 1992 10.7 8.7 9.8 17.5 … 1993 13.2 10.4 11.9 21.3 … 1994 11.8 9.4 10.7 19.4 43.2 1995 11.3 8.7 10.2 18.6 50.6 1996 10.7 8.8 9.9 17.9 54.4 1997 9.5 7.8 8.7 15.9 51.3 1998 8.5 7.0 7.8 13.4 48.8 1999 7.5 6.3 7.0 12.4 49.5 2000 7.0 5.6 6.4 12.1 49.1 2001 6.3 5.0 5.7 10.8 46.7 2001a 6.3 5.0 5.7 10.9 46.7 2002a 6.1 5.4 5.8 12.3 44.9 2003a 6.1 5.6 5.9 13.4 43.9 2004a 6.1 6.1 6.1 15.5 45.0 2005a 7.0 7.5 7.2 19.4 46.2 1 Long term unemployed = 12 or more months without job. a See: Table 3.7. Source: KSH MEF.
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  62. Figure 7.1: Full time studens as a percentage of the different age groups 0 20 40 60 80 100 2003 1993 2221201918171615 Age statistical data 208 Table 7.2: Pupils/students entering the school system, by level of education Year Primary school Vocational school Secondary school College and university 1980 171,347 60,865 57,213 17,886 1989 128,542 91,767 84,140 20,704 1990 125,665 87,932 83,939 22,662 1993 125,679 76,977 87,657 35,005 1994 126,032 77,146 87,392 37,934 1995 123,997 65,352 82,665 42,433 1996 124,554 58,822 84,773 44,698 1997 127,214 53,083 84,395 45,669 1998 125,875 39,965 86,868 48,886 1999 121,424 33,570 89,184 51,586 2000 117,000 33,900a 90,800a 52,578 2001 112,144 34,210 92,393 56,709 2002 112,345 33,497 94,256 57,763 2003 104,020 33,394 92,817 59,699 2004 101,021 32,645 93,469 59,783 2005 97,810 33,114 96,181 61,898 a Estimated data. Note: Excludes special schools. Source: OM STAT.
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  63. Figure 7.3: The percentage of sharing the pupils/students in the educational system 0 20 40 60 80 100 0 20 40 60 80 100 Főiskola, egyetem Középiskola Szakképzés ltalános iskola statistical data 210 Table 7.4: The number of pupils/students not in full time by level Year Primary school Vocational school Secondary school College and university 1980/81 15,627 – 130,332 37,109 1989/90 13,199 – 75,581 28,487 1990/91 11,536 – 68,162 25,786 1991/92 11,724 – 66,204 23,888 1992/93 10,944 – 70,303 25,078 1993/94 8,982 – 76,335 30,243 1994/95 6,558 – 81,204 38,290 1995/96 5,205 – 75,891 50,024 1996/97 4,099 – 74,653 56,919 1997/98 3,165 – 78,292 80,768 1998/99 3,016 – 84,862 95,215 1999/00 3,146 – 88,462 107,385 2000/01 2,940 – 91,700 118,994 2001/02 2,793 2,453 95,231 129,167 2002/03 2,785 3,427 93,172 148,032 2003/04 3,190 3,216 93,322 162,037 2004/05 2,766 3,505 90,321 166,174 2005/06 2,543 4,049 89,950 163,387 Source: OM STAT.
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  64. Figure 8.1: Number of registered vacancies and registered unemployed 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000Number of registered unemployed 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Number of vacancies statistical data 212 Table 8.2: Firms intending to increase/decrease their staff* Year Intending to decrease Intending to increase 1993 28.5 22.3 1994 21.0 29.7 1995 30.9 27.5 1996 29.4 30.4 1997 30.7 36.8 1998 28.9 37.1 1999 28.8 35.8 2000 27.2 36.5 2001 28.6 32.6 2002 27.9 35.4 2003 32.1 34.3 2004 30.0 39.8 2005 25.3 35.0 * In the period of the next half year after the interview date, in the sample of FH PROG. Source: FH PROG.
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  65. Figure 8.2: Firms intending to increase/decrease their staff 20 25 30 35 40 Intending to increaseIntending to decrease labour demand indicators 213 Table 8.3: Firms expecting increasing/decreasing orders* Year Orders increasing decreasing 1993 35.9 33.0 1994 45.6 21.7 1995 47.2 20.7 1996 45.5 21.0 1997 47.5 16.7 1998 47.5 18.0 1999 42.2 20.2 2000 49.1 14.9 2001 44.4 19.1 2002 40.2 19.5 2003 49.0 13.8 2004 38.2 20.5 2005 n.a. n.a. * In the period of the next half year after the interview date, in the sample of FH PROG. Source: FH PROG.
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  66. For up to 200 days for the temporary work agency Act IV of 1991. Article 16/B Ministry of Labour Regulation No.
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  67. Fortheperiodofbetween1991and1996,theregister also contains the stock and flow data of the recipients of school leavers’ unemployment benefit. Since 1997 the system has also contained the recipients of pre-retirement unemployment benefit. In addition to headcount data, the benefit register can also monitor the average duration of the period of benefit allocation and the average monthly amount of the benefits allocated. The key data regarding benefits are published by the Employment Office in the monthly periodical Labour Market Situation. In addition, time series data is published annually in the Time Series of the UnemploymentRegister,alwayscoveringthelastsix years in the form of a monthly breakdown.
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  68. From 2001 together with regular social allowance recipients.
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  69. Full time or part-time employment of at least 4 hours/day and 9 months, continue employment for a further 3 months after the subsidised period. Eligible persons are not employed and they take up their first regular employment after the end of their eligibility for child care or carers’ allowance. 50% of the contributions (for a gross monthly wage of up to HUF 90,000) 9 months Act CXXIII. of 2004, article 4 Paid internship Young persons with higher education with no formal work experience. The monthly grant equals the minimum wage or higher. The employer and the intern sign a contract. After graduation, for a single period. 50% of the contributions (for a gross monthly wage of up to HUF 90,000), in the public sector the subsidy can be 50% of the grant.
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  70. Galasi Péter (2003a): Estimating Wage equations for Hungarian Higher-education Graduates. BWP. 2003/4, Budapest.

  71. Galasi Péter (2004a): Túlképzés, alulképzés és kereset a munkaerőpiacon (1994–2002) [Over-qualification andUnder-qualificationandEarningsReturnsonthe Hungarian Labour Market between 1994 and 2002] Közgazdasági Szemle, No. 5.

  72. Galasi Péter – Timár János (1997): Jelentés a felsőoktatási intézményekben 1996-ban végzettek kí-in focus 124 sérleti követéses vizsgálatának eredményeiről, BKE Emberi erőforrások tanszék, FIDÉV Kutatócsoport, Budapest.
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  73. Galasi Péter – Timár János (1998): Jelentés a felsőoktatási intézményekben 1996-ban végzettek kísérleti követéses vizsgálatának második hullámáról, BKE Emberi erőforrások tanszék, FIDÉV Kutatócsoport, Budapest.
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  74. Galasi Péter – Timár János – Varga Júlia (2000): Pályakezdő diplomások munkaerő-piaci helyzete, Munkaügyi Szemle, 2000. december, pp. 22–26.
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  75. Galasi Péter – Timár János – Varga Júlia (2001): Pályakezdő diplomások a munkaerőpiacon.In: Semjén A. (ed.) Oktatás és munkaerő-piaci érvényesülés, MTA Közgazdaságtudományi Kutatóközpont, Budapest, 2001, pp. 73–89.
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  76. Galasi Péter and Varga Júlia (2002): Does Private and Cost-priced Higher Education Produce Poor Quality?, Society and Economy, Vol. 24, No. 3, pp. 333–361.

  77. Galasi Péter and Varga Júlia (2005): Munkaerőpiac és oktatás, KTI Könyvek 1, Budapest.
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  78. GalasiPéter(2004b):Valóbanleértékelődtekafelsőfokú diplomák? [Have Degrees Really Lost their Value?] A munkahelyi követelmények változása és a felsőfokú végzettségű munkavállalók reallokációja Magyarországon 1994–2002. BWP. 2004/3.
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  79. Greene, W.H. (1993) Econometric Analysis, Second Edition, Macmillan, New York, 1993.
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  80. Grosfeld, I. and J-F. Nivet (1997): Firms Heterogeneity in Transition: Evidence from a Polish Panel Data Set; William Davidson Institute 47.

  81. Grosfeld, I. and Nivet, J. (1999): Insider power and wage setting in transition: evidence from a panel of large Polish firms, 1998–94; European Economic Review, Vol. 43, pp. 1137–1147.

  82. Hahn Csaba (2004): A térségi fejlődést befolyásoló tényezők Magyarországon [Factors affecting regional development]. Területi Statisztika, 7(6).
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  83. Horváth Zsuzsa – Környei László (2003): A közoktatás minősége és eredményessége. In: Jelentés a közoktatásról 2003. OKI, Budapest, pp. 309–345. [Quality and efficiency in public education. In: Report on public education.] Jurajda, S. (2003): Czech Returns to Schooling: Does the Short Supply of Education Bite?, CERGE-EI, July 8, mimeo, Prague.
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  84. ian Standard Classification of Occupations (further FEOR-93), being in force as from 1997. As to basic principles and structure, it follows the international classification of occupations, ISCO-88 (Rev. 3.), and classifies the occupations into the same 10 majorgroups. Insometables“legislators,seniorgovernment officials, leaders of interest groups and managersoffirms ”and“professionals”aregroupedtogether as “leaders, intellectuals”, “technicians and associate professionals” and “office and management (customerservice) clerks”aregroupedtogetheras“other non-manualworkers”.Inthesametablesthegroupof “craft and related trades workers” include “plant and machine operators and assemblers, vehicle drivers” too,whilethegroup“otheroccupations”containselementary occupations and armed forces together.
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  85. In: Fazekas, K. and J. Koltay (eds): The Hungarian Labour Market, 2003; Institute of Economics (HAS) – Hungarian Employment Foundation, Budapest, 2003, pp. 114–117.

  86. In: Fazekas, K. and J. Koltay: The Hungarian Labour Market, 2002. Institute of Economics – Hungarian Employment Foundation, Budapest, 2002, pp. 37–130.

  87. In: Kolosi T. – Tóth I. Gy. – Vukovich Gy.: Társadalmi riport 2002. TRKI, Budapest, pp. 245–255.
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  88. Jurajda, S. (2003): Gender wage gap and segregation in enterprises and the public sector in late transition countries. Journal of Comparative Economics, 31, pp. 199–222.

  89. Justified extra expenditure The duration of training placement Ministry of Labour regulation No. 11/1998. (IV.29.) Article Name of the measure Scope Conditions Level/Amount Length Legal basis mária frey 150 Subsidy to the creation of new employment opportunities Subsidy for job creation Creation of new jobs, expansion of existing jobs, and investment in tangible and non-tangible assets or the personnel costs of job creation.
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  90. Kőrösi Gábor (2000) A vállalatok munkaerő-kereslete.
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  91. Kőrösi Gábor (2002) Labour Adjustment and Efficiency in Hungary. BWP 2002/4.
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  92. Kőrösi Gábor (2005): A versenyszféra munkapiacának működése [How the Labour Market Works in the Private Sector of Hungary]; MTA-KTI, Budapest.
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  93. KőrösiGábor(1998)LabourDemandDuringTransition in Hungary. BWP. 1998/5.
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  94. Köllő János (2002): Evolution of Wages by Major Groups of Labour. Differences by Education and Age: The Revaluation of Human Capital. In: The Hungarian Labour Market. Review and Analysis. Institute of Economics HAS, Budapest, pp. 73–76.
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  95. Köllő János (2003): Regionális kereseti és bérköltség-különbségek [Regionaldifferentialsinearningsandlabour costs].In:Cseres-GergelyZs.andFazekasK.(eds.): Munkaerőpiaci Tükör 2003. Institute of Economics (HAS) – Hungarian Employment Foundation, Bp.
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  96. Köllő János (2004): Regional differentials in earnings and labour costs. In: Fazekas Károly and Koltay references 125 Jenő (eds.): The Hungarian Labour Market 2004. InstituteofEconomics (HAS)–HungarianEmployment Foundation, Budapest.

  97. Köllő, J. (ed.) (2002): Wages: a decade of transformation.
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  99. Kézdi Gábor (1998): Az önbevalláson alapuló kereseti adatok érvényessége, Közgazdasági Szemle, November, pp. 1035–1042.

  100. Kézdi Gábor (2002) Two Phases of Labor Market Transition in Hungary: Inter-Sectoral Reallocation and SkillBiased Technological Change. BWP 2002/3.
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  101. Kézdi Gábor (2005): Education and Earnings. In: The HungarianLabourMarketReviewandAnalysis.Institute of Economics HAS Budapest, pp. 31–37.
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  102. Kertesi G. and Köllő J. (2001): A gazdasági átalakulás két szakasza és az emberi tőke átértékelődése [Two PhasesofLabourMarketTransitionandtheRevaluation of Human Capital]; Közgazdasági Szemle, 48(9), pp. 897–919.

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  104. Kertesi, G. and J. Köllő (1997a): Reálbérek és kereseti egyenlőtlenségek, 1986–1996, Közgazdasági Szemle, Vol. 7–8.

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  106. Kertesi, G. and J. Köllő (1999): Economic Transformation and the Return to Human Capital. BWP. 1999/6.
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  107. Kertesi, G. and J. Köllő (2002): Economic Transformation and the Revaluation of Human Capital – Hungary 1986–1999. In: A. de Grip, Van Loo,J. and Mayhew K. (eds) The Economics of Skills Obsolescence, Research in Labor Economics v. 21, JAI, Oxford, pp. 235–273.

  108. Kertesi, G. and J. Köllő (2005): Felsőoktatási expanzió, diplomás munkanélküliség és a diplomák piaci értéke.

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  114. Non-manual workers are persons with occupations classified by the ISCO-88 in major groups 1-4., manual workers are persons with occupations classified in major groups 5-9. since 1st January 1994.
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  115. Note: As of September 2002, minimum wage earners do not pay personal income tax. As a result of this measure, the net minimum wage increased by 15.9 per cent. Source: KSH.
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  116. Note: The data refer to full-time employees in the budget sector and firms employing at least 20 workers (1992–94), 10 workers (1995–99) and 5 workers (2000–), respectively.
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  117. Note: Till 1999 updated figure based on 1990 population census since 2000 based on 2001 population census. ‘Employed ’ includes conscripts and working pensioner. Data on students for 1995–97 have been estimated using projected population weights. ‘Other inactive’ is a residual category.
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  118. OECD (2002): Literacy in the Information Age, Statistics Canada.
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  119. OgloblinC.G.(1999):TheGenderEarningsDifferential intheRussianTransitionEconomy.IndustrialandLabor Relations Review, Vol. 52, No. 4, pp. 602–627.
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  120. Polónyi István and Timár János (2001) Tudásgyár vagy papírgyár. Új Mandátum Kiadó, Budapest.
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  121. Progress and compliance with the content of the job-search agreement is evaluated jointly by the individual and the designated member of staff of the local office of the job centre on a regular basis at personal meetings. The doc5 See Act CXXXVI of 2004 on the Amendment of certain social acts. Among others, this concerns Act III of 1993 on Social Administration and Social Assistance The relevant section has been in force since September 1, 2005.
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  122. Recipients of regular social assistance are included since 2001. Note: On the closing date of June in every year.
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  123. Recruitment and long-term employment of unemployed persons; for investment projects; aid distributed through competition, at least 25% own contribution (non-repayable grant) Applicable aid intensity Act IV of 1991.
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  124. Rivkin, G.R., Hanusek, E.A. and Kain, J.F. (2000): Teachers, Schools and Academic Achievement Working Paper 6691. National Bureau of Economic Research, Massachusetts.
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  125. Rubb, S. (2003) Post-College Schooling, Over-education, and Hourly Earnings in the United States. Education Economics, Vol. 11, pp. 53–72.

  126. See: Table 3.7. Source: KSH MEF. employment 167 Table 4.1: Employed Year 1000 prs 1992 = 100 Employment ratio1 1980 5,458.2 133.7 65.3 1990 4,880.0 119.5 59.0 1991 4,520.0 110.7 54.4 1992 4,082.7 100.0 49.0 1993 3,827.0 93.7 45.8 1994 3,751.5 91.9 44.8 1995 3,678.8 90.1 43.9 1996 3,648.2 89.4 43.6 1997 3,646.4 89.3 43.6 1998 3,697.8 90.6 44.3 1999 3,811.4 93.4 45.7 2000 3,849.1 94.3 46.2 2001 3,859.5 94.5 … 2001a 3,883.3 95.1 45.6 2002a 3,883.7 95.1 45.6 2003a 3,921.9 96.1 46.2 2004a 3,900.4 95.5 45.8 2005a 3,901.5 95.6 45.7 1 Per cent of the population above 15 year. a
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  127. Serbia 5,395 new dinars 73 2004.02. 5,395 73 2004.02. 8,004 96.44 2006.05.
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  128. Since 1999 serious methodology changes: people whose last contact with employment office was more then two months before the interview were excluded. Source: KSH MEF.
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  129. Source: Employment: 1989–1991: KSH MEM; 1992–: KSH MEF. Other data: KSH.
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  130. Source: FH PROG. regional inequalities 215 Table 9.1: Regional inequalities: Labour force participation rates Year Central Hungary Central Transdanubia Western Transdanubia Southern Transdanubia Northern Hungary Northern Great Plain Southern Great Plain Total 1992 62.3 57.7 62.0 57.2 52.2 52.5 57.9 58.0 1993 58.4 55.2 60.5 52.9 49.3 48.4 53.4 54.5 1994 57.2 54.4 59.9 52.4 47.7 47.5 53.0 53.5 1995 57.1 53.1 58.5 48.8 46.3 46.4 53.0 52.5 1996 56.8 52.7 59.3 50.3 45.7 45.6 52.8 52.4 1997 56.8 53.6 59.8 50.0 45.7 45.2 53.6 52.5 1998 57.7 56.0 61.6 51.5 46.2 46.4 54.2 53.7 1999 59.7 58.5 63.1 52.8 48.1 48.8 55.3 55.6 2000 60.5 59.2 63.4 53.5 49.4 49.0 56.0 56.3 2001 60.8 59.8 63.2 52.5 49.6 49.6 56.2 56.5 2001a 60.6 59.3 63.1 52.3 49.7 49.5 55.8 56.2 2002a 60.9 60.0 63.7 51.6 50.3 49.3 54.2 56.2 2003a 61.7 62.3 61.9 53.4 51.2 51.6 53.2 57.0 2004a 62.9 60.3 61.4 52.3 50.6 50.4 53.6 56.8 2005a 63.3 60.2 62.0 53.4 49.5 50.2 53.8 56.9 * Age: 15–64. a See: Table 3.7. Source: KSH MEF.
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  131. Source: FH REG. unemployment 185 Table 5.10: First-time entrants and re-entrants to the unemployment register, in thousands Year First-time entrants Re-entrants Total number of entrants 1995 17.0 28.7 45.7 1996 19.2 33.6 52.8 1997 17.0 39.2 56.1 1998 13.4 42.0 55.4 1999 12.8 44.4 57.2 2000 11.2 42.9 54.1 2001 11.2 45.8 57.0 2002 10.4 45.6 56.0 2003 10.0 44.8 54.8 2004 10.5 47.4 57.8 2005 10.8 50.0 60.7 Source: FH REG.
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  132. Source: FH. statistical data 188 Table 5.15: The ratio of those who are employed among the former participants of ALMPs* Active labour market programmes 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Suggested training programmes 44.5 46.3 46.8 46.8 48.4 45.4 43.3 43.0 45.5 43.8 Accepted training programmes 50.2 51.1 51.5 50.0 52.0 49.3 45.8 46.0 45.6 51.4 Retrainig of those who are employed 92.8 90.4 94.7 94.8 94.9 94.2 92.7 93.3 92.1 90.4 Support for self-employment 90.2 88.1 91.7 90.5 89.4 89.2 90.7 89.6 90.7 89.6 Wage subsidy programmes 70.1 66.3 59.1 59.7 62.3 59.7 62.9 62.0 64.6 62.6 Work experience programmes – 65.7 59.1 55.8 57.9 64.5 66.9 66.1 66.5 66.8 Further employment programme – 72.1 75.1 68.5 73.8 71.6 78.4 78.2 71.5 70.9 * Three months after the end of programmes. Source: FH.
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  133. Source: FH. unemployment 187 Table 5.12: Distribution of registered unemployed by educational attainment Educational attainment 1995 1998 2001 2004 2005 2006 8 classes of primary school or less 43.6 40.9 42.3 42.7 41.8 41.5 Vocational school 34.5 36.0 34.2 32.2 32.6 32.3 Vocational secondary school 11.7 12.8 13.0 13.4 13.6 13.6 Grammar school 7.9 7.8 7.7 7.8 8.0 8.2 College diplom; BA 1.5 1.8 2.1 2.8 2.9 3.2 University diplom; MA 0.7 0.6 0.7 1.0 1.0 1.2 Total 100.0 100.0 100.0 100.0 100.0 100.0 N 482.7 406.4 359.6 350.7 388.1 359.6 Note: On the closing date of June in every year. Source: FH.
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  134. Source: FH. unemployment 189 Table 5.17: The distribution of the total number of labour market training participants Groups of labour market training participants 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Participants in suggested training 49.3 59.2 61.0 61.4 59.2 58.4 56.5 54.6 55.1 66.9 Participants in accepted training 43.3 34.9 33.8 33.4 35.1 35.7 38.5 34.5 32.4 22.0 Non-employed participants together 92.7 94.1 94.8 94.8 94.3 94.2 95 89.1 87.5 88.9 Of which: school-leavers 23.4 28.5 30.6 29.8 25.1 22.5 23.5 22.1 20.3 21.3 Employees 7.3 5.9 5.2 5.2 5.7 5.8 5.0 10.9 12.5 11.1 Participants of labour market training total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Source: FH.
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  135. Source: KHS, IMS. statistical data 194 Figure 6.2: Gross earnings as a percentage of national average, by industry, 1995, 2005 -40-20 0 20 40 60 80 100 Financial intermediation Mining and quarrying Electricity, gas, steam and water supply Public administration and defence Real estate, renting, business activities Transport, storage and communication Wholesale and retail trade Manufacturing Education Construction Health and social work Hotels and restaurants Agriculture 1995 2005 -40-20 0 20 40 60 80 wages 195 Table 6.3: The composition of full-time employees and average earnings by gender in major branches of the economy in 2005 Industries Males Females Together Female/ male earnings ratio Composition Average earning Composition Average earning Composition Average earning % HUF/person, month % HUF/person, month %
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  136. Source: KSH MEF. unemployment 183 Table 5.8: Registered unemployed by economic activity as observed in the LFS Year Employed Unemployed Inactive Total 1992 5.1 71.6 23.3 100.0 1993 10.0 63.6 26.4 100.0 1994 14.4 54.5 31.1 100.0 1995 11.8 53.7 34.5 100.0 1996 13.7 51.8 34.5 100.0 1997 18.7 44.1 37.2 100.0 1998 24.8 35.1 40.1 100.0 1999 6.7 55.8 37.5 100.0 2000 4.7 54.3 41.0 100.0 2001 6.5 45.2 48.3 100.0 2002a 4.4 47.4 48.2 100.0 2003a 9.4 44.1 46.5 100.0 2004a 3.0 53.5 43.5 100.0 2005a 2.3 59.7 38.0 100.0 a See: Table 3.7. Note: The data refer to the population observed as registered unemployed in the LFS.
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  137. Support for the employment of young persons Persons under 25 years Full time or part-time employment of at least 4 hours/day for at least 9 months, continue employment for a further 3 months after the subsidised period. 50% of the contributions (for a gross monthly wage of up to HUF 90,000) 9 months Act CXXIII. of 2004, article 2–3 Support for the employment of persons entering work after childcare or caring for a next of kin Employment of persons returning to work following child care or caring for a next of kin.
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  138. Table 1: Distribution of recipients of passive unemployment compensation by type of assistance between 1992–2005 (percentage) Type of compensation Distribution of recipients at the end of the year 1992 1993 1994 1998 2000 2001 2002 2003 2004 2005 Unemployment benefit 86.6 57.8 34.8 40.8 44.8 51.1 47.2 45.4 43.8 42.0 Unemployment allowance of young persons 5.3 6.5 7.4 – – – – – – – Income replacement assistance 8.1 27.8 45.6 45.5 36.9 10.8 4.0 0.8 0.3 – Regular social allowance – – – .. 13.2 34.8 45.6 48.4 47.9 49.1 Pre-pension 0.0 7.9 12.1 13.2 2.2 0.3 – – – – Pre-retirement unemployment allowance 0.5 2.9 3.0 3.2 2.7 2.3 2.0 Job-search assistance 2.7 5.7 6.9 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Those not receiving any assistance, as percentage of total registered unemployed 22.6 26.4 26.2 26.1 29.5 33.5 33.3 33.6 33.5 33.8 Source: Calculations based on data of the Employment Office.
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  139. Table 11.3: Strikes Year Number of strikes Number of involved persons Hours lost (in thousands) 1991 3 24,148 76 1992 4 1,010 33 1993 5 2,574 42 1994 4 31,529 229 1995 7 172,048a 1,708a 1996 8 4,491 19 1997 5 853 15 1998 7 1,447 3 1999 5 16,685 242 2000 5 26,978 1,192 2001 6 21,128 61 2002 4 4,573 9 2003 7 10,831 19 2004 8 6,276 116 2005 11 1,425 8 a Teachers strikes number partly estimated.
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  140. Table 6.15: Average monthly earnings in the competitive sector by ownership ratios and staff-size categories, HUF/capita, month, 2005 – manual workers Ownership ratio Average earnings Over 1000 Between 301–100 Between 51–300 Between 21–50 Between 10–20 Between 5–9 Total 100 % foreign ownership 136,914 139,067 133,492 130,998 118,476 126,410 135,481 Foreign majority 151,342 146,939 132,587 118,074 122,403 96,254 141,067 Domestic majority 165,107 139,168 113,953 116,963 92,157 67,128 129,295 100% domestic ownership 137,004 115,976 101,064 87,719 77,463 69,688 96,355 Unknown 145,433 106,034 112,191 113,077 79,268 136,946 131,275 Total 140,581 127,124 110,072 92,415 80,032 92,529 108,911 Source: FH-BT.
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  141. Table 6.5: The composition of full-time employees and average earnings in the budgetary sector by gender and level of education in 2005 Level of education Males Females Together Female/ male earnings ratio Composition Average earning Composition Average earning Composition Average earning % HUF/person, month % HUF/person, month %
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  142. The act was adopted on June 27, 2005 and entered into force on October 1, 2005.
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  143. The coverage of the registered unemployed looks far less favourable if we consider only those who are actively looking for work. Table 2 shows that while 61.9% of those who are considered unemployed according to the ILO definition were receiving assistance in 1992, this figure was 43.2% in 1999, and only 34.9% in 2004. Within this, the share of people receiving unemployment benefit dropped from nearly two thirds in 1999 to 15.7% in 2004. On the contrary, the share of the recipients of income replacement assistance increasedfrom6. 5%intheyearofitsintroduction(1993)to20.9%in1999,the yearpriortoitswithdrawal.Theregularsocialallowancewhichreplaceditwas paid to 13.9% of those unemployed who were actively looking for work.
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  144. The detailed data of unemployment benefit recipients have been available from the benefit register since January 1989. The first two years had a different benefit allocation system, and the current system, which has been modified several times since then, was implemented by the Employment of 1991 (Act IV).
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  145. The legal basis of the current institutional system of the labour market was createdbyActIVof1991onJobAssistanceandUnemploymentBenefits.The bill which entered into force on March 1, 1991 and amended several times: – created an insurance scheme for unemployment benefits, – established the institutions of organised social dialogue, – established the single public employment service, – expanded the range of active labour market measures. From the above, the present chapter – due to limitations of space – focuses only on unemployment benefits and active labour market policies. 1. INCOME REPLACEMENT ASSISTANCE OF THE UNEMPLOYED To compensate for the loss of income as a result of unemployment the Employment Act originally introduced three types of assistance: the unemployment benefit, the unemployment allowance of young persons and the prepension.
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  146. The Steering Committee of the Labour Market Fund and the minister responsible for employment can initiate labour market programmes Defined in the programme As defined in the programme, up to 3 years Act IV of 1991. Article 19/B Ministry of Labour Regulation No.
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  147. The unemployment allowance of young persons was phased out as Foreword mária frey 130 of July 1, 1996. New eligibility for the pre-pension could be established up until December 31, 1997. As of January 1, 1998 however it was replaced by the pre-retirement unemployment allowance.
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  148. TheCommunityregulationsonblockexemptionsforstateaidtoenterprises remaininforceuntilDecember31,2006andcanbeappliedforanadditional 6months,untilJune30,2007.Mostofthenationalaidschemeswerenotified to the Commission with an expiry on December 31, 2006. Therefore information or a simplified notification (according to Article 4 of 794/2004/EC regulation) had to be sent to the Commission in order to extend their applicationfortheadditional6months.
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  149. These measures offered employment and training opportunities initially for anincreasingandthenforadecreasingproportionofjobseekers.Theso-called activation rate – which compares the number of participants in active measures with the sum of active measure participants and registered unemployed – was around only 16–17% in the mid 1990s then rose above 20% in 1998 and reached 22.4% in 2001. Since then, a sharp decline has been taking place and the rate fell to 18.5% in 2003 and 14.9% in 2005.
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  150. United Kingdom pounds sterling 927.32 1,380.54 2006.10. * Where official rates are expressed by the hour or week, they have been converted to monthly rates on the basis of a 40-hour week or 52-week year. Minimum wage figures exclude any 13th or 14th month payments that may be due under national legislation, custom or practice. 1 Minimum wage levels last updated. 2 Unmarried white collar workers only. 3 The terms of this wage order entitle a worker to 13 or 14 monthly payments per year. 4 Starting salary in non-unionised sectors. Iincreases after six months’ service. Rates apply only in six occupations. 5 Unskilled workers only.
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  151. Up to 1 year Act IV of 1991. Article 19/C Ministry of Labour Regulation No.
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  152. Up to 1 year; 1.5 year for people aged 45 and over; 2 years for local Roma governments Act IV of 1991. Article 16/A Ministry of Labour Regulation No.
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  153. Up to 100% of the part of cost of commuting to be borne by the employer (on the basis of Government regulation No. 78/1993. [V.13.]) Up to 1 year Government regulation no.
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  154. up to 12 months Act IV of 1991, article 18/A Support for training Support for training Unemployed, under 25/30 years and not eligible for unemployment benefit, employees whose employment cannot be continued without training, people receiving child-care benefits or carers’ allowance, participants of community work programmes (the Steering Committee of the Labour Market Fund can add further target groups) Income top-up or income replacement assistance and up to 100% of the costs of training During the training Act IV of 1991.
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  155. Up to 18 month in the case of fulltime employment, in the case of parttime employment proportionately Ministry of Labour regulation No. 11/1998. (IV.29.) Article 4 Reimbursement of the statutory social insurance contributions Employment of job-seekers Up to 100% of health care and pension contributions, employers’ contribution, fixed-sum health insurance contribution. For people on probation the level should reach at least 70%, for people aged 50 years and over at least 50%. Up to 200 days. Up to 1 year for unemployed people aged 50 years and over, people on probation or released from prison during the previous 6 months.
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  156. Up to 90 days in any calendar year Ministry of Economy regulation no. 30/2000.
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  157. Varga Júlia (2006) Why to get a 2nd diploma? Is it lifelong learning or the outcome of state intervention in educational choices? BWP. 2006/4.

  158. VargaJúlia(2002):EarningsExpectationsandHigherEducation Enrolment Decisions in Hungary. Society and Economy. Vol. 24, No. 1, pp. 121–152.
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  159. When considering these figures, it should be taken into account that in 2004 the programmes funded by the European Union were launched and from 2005 – in the framework of the “100 Steps Programme” – a number of new measures were introduced to increase employment and reduce unemployment. These to some extent overlap with the active measures of the Employment Act but the beneficiaries of these programmes do not appear in the statistics on participation in active measures. 2.2. The “100 Steps Programme” The labour market chapter of the “100 Steps Programme” initially included 15 and then a number of further measures to increase employment and improve transparency on the labour market relating to undeclared work. Here only the relevant measures are presented, namely those that reduce social insurance contributions, based on a universal entitlement.
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  160. Wooldridge, J. M. (2002): Econometric Analysis of Cross Section and Panel Data. Cambridge, MIT Press. LEGAL AND INSTITUTIONAL ENVIRONMENT OF THE HUNGARIAN LABOUR MARKET Mária Frey legal and institutional environment... 129 Each year the Labour Market Review has presented those changes in the legal and institutional environment of the labour market which have taken place since the publication of the previous volume, together with their reasons and motives. This year however, instead of presenting the changes, the study was commissioned to give an overview, in a comprehensive and clear way,ofthecurrentlegislationandrules.Thesubsequentreviewofdocuments serves this objective. Ashashappenedanumberoftimespreviously,once again during the writing of this paper a proposal for a new legislative amendment has been put forward, the outcome of which is not known at the time of the submission of the final draft. Therefore in addition to the facts, expected future changes are also indicated. *
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  1. .

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  2. States in Fiscal Distress. (2010). Inman, Robert P..
    In: NBER Working Papers.
    RePEc:nbr:nberwo:16086.

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  3. The Economics of Place-Making Policies. (2008). Gottlieb, Joshua ; Glaeser, Edward.
    In: NBER Working Papers.
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  4. Geographical Distribution of Unemployment: An Analysis of Provincial Differences in Italy. (2007). Nijkamp, Peter ; Cracolici, Maria Francesca ; Cuffaro, Miranda.
    In: Tinbergen Institute Discussion Papers.
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  5. Labour Market Flexibility and Regional Unemployment Rate Dynamics: Spain 1980-1995. (2007). Karanassou, Marika ; Bande, Roberto.
    In: IZA Discussion Papers.
    RePEc:iza:izadps:dp2593.

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  6. Housing supply and the interaction of regional population and employment. (2006). van Ommeren, Jos ; Vermeulen, Wouter.
    In: CPB Discussion Paper.
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  7. HYSTERESIS VS. NAIRU AND CONVERGENCE VS. DIVERGENCE: THE BEHAVIOR OF REGIONAL UNEMPLOYMENT RATES IN BRAZIL. (2006). da Silva, Cleomar Gomes ; Fabio Augusto Reis Gomes, .
    In: Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting].
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  8. Does Air Quality Matter? Evidence from the Housing Market. (2005). Greenstone, Michael ; Chay, Kenneth.
    In: Journal of Political Economy.
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  9. Russias Regions; Income Volatility, Labor Mobility and Fiscal Policy. (2005). Spilimbergo, Antonio ; Kwon, Goohoon.
    In: IMF Working Papers.
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  10. The trade-off between agglomeration forces and relative costs: EU versus the “world” Evidence from firm-level location data 1974-1998. (2005). Thulin, Per ; Braunerhjelm, Pontus.
    In: Working Paper Series in Economics and Institutions of Innovation.
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  11. Business Cycles, Migration and Health. (2005). Halliday, Timothy.
    In: Working Papers.
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  12. Russias Regions: Income Volatility, Labour Mobility and Fiscal Policy. (2005). Spilimbergo, Antonio ; Kwon, Goohoon .
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  13. Convergence in West German Regional Unemployment Rates. (2004). Juessen, Falko ; Bayer, Christian.
    In: Urban/Regional.
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  14. Migration and Regional Disparities: the Role of Skill Biased Flows. (2004). Fratesi, Ugo ; Riggi, Massimiliano.
    In: Urban/Regional.
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  15. Regional Unemployment and Productivity in Europe and the US. (2004). De Benedictis, Luca ; Basile, Roberto.
    In: ERSA conference papers.
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  16. Cities and Cultures. (2004). Peri, Giovanni ; Ottaviano, Gianmarco.
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  17. Dinamiche demografiche, agglomerazione e determinanti economiche. Il caso italiano. (2004). Bellinzas, Matteo.
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  18. REGIONAL POVERTY IN MICHIGAN: RURAL AND URBAN DIFFERENCE. (2004). Schmid, Allan ; Nizalov, Denys.
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  19. Spatial autocorrelation in employment-output relation. (2003). Ahtonen, Sanna-Mari.
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  20. Crime, Unemployment and Labor Market Programs in Turbulent Times. (2003). Agell, Jonas ; Nilsson, Anna .
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  21. Crime, unemployment and labor market programs in turbulent times. (2003). Agell, Jonas ; Nilsson, Anna .
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  22. Does bank lending affect output? evidence from the U.S. states. (2003). Driscoll, John.
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  23. Interpreting European and US Labour Market Differences: The Specificity of Human Capital Investments. (2003). Wasmer, Etienne.
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  24. EMPLOYMENT GROWTH AND THE ALLOCATION OF NEW JOBS: EVIDENCE FROM THE SOUTH. (2003). Renkow, Mitch.
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  25. A spatial panel approach to the east German wage curve. (2002). Elhorst, J.Paul ; Blien, Uwe ; Wolf, Katja.
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  26. Forecasting regional labour markets in Germany: an evaluation of the performance of neural network analysis. (2002). Reggiani, Aura ; Nijkamp, Peter ; Longhi, Simonetta ; Blien, Uwe.
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  27. Interpreting Europe and US labor markets differences: the specificity of human capital investments. (2002). Wasmer, Etienne.
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  28. The States vs. the states: On the Welfare Cost of Business Cycles in the U.S.. (2002). Robe, Michel ; Pallage, Stephane.
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  29. Factor mobility and regional disparities; east, west, homes best?. (2002). Parikh, Ashok ; Nahuis, Richard.
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  30. Regional Labour Market Adjustment: Are Positive and Negative Shocks Different?. (2001). Pekkala Kerr, Sari ; Kangasharju, Aki.
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  31. Rent Sharing in Wage Determination: Evidence from Italy. (2001). Strozzi, Chiara ; Pistoresi, Barbara.
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  32. Are commuting and residential mobility decisions simultaneous?: the case of catalonia. (2001). Suriñach, Jordi ; Suriñach, Jordi ; Artís, Manuel ; Romani, J. ; Suriñach, Jordi ; Suriach, J..
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  33. LABOR MARKET BEHAVIOR IN WASHINGTON: A COINTEGRATION APPROACH. (2001). Ahn, Sung K. ; Yeo, Junho ; Jun Ho Yeo, ; Holland, David W..
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  34. THE EFFECT OF AGGREGATE FLUCTUATIONS ON REGIONAL ECONOMIC DISPARITIES IN FINLAND. (2000). Pekkala Kerr, Sari ; Kangasharju, Aki.
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  35. THE GEOGRAPHICAL DISTRIBUTION OF UNEMPLOYMENT IN SPAIN. (2000). Lopez-Bazo, Enrique ; del Barrio Castro, Tomás ; Artís, Manuel ; Artis, Manuel .
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  36. EMU AND THE INDUSTRIAL SPECIALIZATION OF EUROPEAN REGIONS. (2000). Krieger-Boden, Christiane.
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  37. CHANGING THE ECONOMIC LANDSCAPE: THE PHENOMENON OF REGIONAL INVERSION IN THE US MANUFACTURE SECTOR. (2000). Montañés, Antonio ; Lanaspa, Luis ; Montaes, Antonio ; Olloqui, Irene ; Sanz-Gracia, Fernando .
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  38. Monetary policy, housing investment, and heterogeneous regional markets. (2000). Schuh, Scott ; Fratantoni, Michael.
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  39. Asymmetric shocks among U.S. states. (2000). Del Negro, Marco.
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  40. The Wage Curve: The Lessons of an Estimation Over a Panel of Countries. (2000). Guichard, Stephanie ; Laffargue, Jean-Pierre.
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  41. Regional Mobility and Geography. (1999). Comin, Diego.
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  42. De baten van een gemeenschappelijke Europese munt. (1999). Peeters, Marga ; van Els, Peter .
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  43. Measuring the Economic Effects of Military Base Closures. (1999). Hooker, Mark A. ; Knetter, Michael M..
    In: NBER Working Papers.
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  44. From the Invisible Handshake to the Invisible Hand? How Import Competition Changes the Employment Relationship. (1999). Bertrand, Marianne.
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  45. Some unpleasant arithmetics of regional unemployment in the EU. Are there any lessons for EMU?. (1999). Sestito, Paolo ; Frontini, Elisabetta ; Pench, Lucio R..
    In: European Economy - Economic Papers 2008 - 2015.
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  46. La diversité des marchés du travail en Europe : Quelles conséquences pour lUnion Monétaire. (1999). Maurel, Mathilde ; Guichard, Stephanie ; Cadiou, Loic .
    In: Working Papers.
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  47. Risksharing within the United States: what have financial markets and fiscal federalism accomplished?. (1998). van Wincoop, Eric ; Athanasoulis, Stafano.
    In: Research Paper.
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  48. Symmetry and Asymmetry of Supply and Demand Shocks in the European Union. (1997). Boone, Laurence .
    In: Working Papers.
    RePEc:cii:cepidt:1997-03.

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  49. Local Labor Markets and Welfare Spells: Do Demand Conditions Matter?. (1996). Hoynes, Hilary.
    In: Institute for Research on Poverty Discussion Papers.
    RePEc:wop:wispod:1104-96.

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  50. What We Know and Do Not Know About the Natural Rate of Unemployment. (1996). Katz, Lawrence ; Blanchard, Olivier.
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