An analysis of unemployment benefit adequacy and recommendations for statutory changes in the framework of the National Recovery and Resilience Plan

Commissioned by: Croatian Employment Service
Project duration: March 21, 2022 – September 30, 2022
Project manager: Danijel Nestić
Collaborators:  Valerija Botrić, Ivan Žilić, Ivica Rubil, Vedran Recher, Lea-Karla Matić, Ivona Krezić

Summary:
The aim of the project was to prepare an expert basis for improving the adequacy of unemployment benefits. The purpose was to analyze the system of unemployment benefits in Croatia with an assessment of its impact on the speed and quality of (re)employment, and an assessment of the potential effects of its changes. The analysis included a description of the existing unemployment benefits system, descriptive statistics, and a comparative analysis of benefits among the EU countries. The impact assessment was based on a microeconometric analysis of the relationship between unemplyoment benefits and outcomes in the labor market, and a counterfactual analysis of the effects of changes in the unemployment benefits system. Based on the analysis, legislative changes in the unemployment benefits system were proposed. The result of the project was a study on the adequacy of the unemployment benefits system in Croatia with recommendations for its improvement through legislative changes.