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1 Ekonomický časopis (Journal of Economics)

1 2015

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JOB CREATION BY DIRECT FINANCIAL SUBSIDIES IN THE SLOVAK REPUBLIC – A COST-BENEFIT ANALYSIS

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Kӧning B. , Domonkos T.

Ekonomický časopis (Journal of Economics)

2015

tom 63

nr 4

359 – 371

The problem of high unemployment has stigmatized the Slovak labour market for several decades. Policy makers have espoused ambitions to solve this problem but with varyingly small degrees of success. One of the measures of labour market policy can be direct financial support directed at job creation for the unemployed. This article aims to analyse and develop a procedure useful for estimating the effective amount of state subsidies for such kinds of job creation policy. The results indicate that the proposed methodology could be a useful tool to evaluate the upper limit of subsidies.