Transition from cash benefits to work: The case of Slovenia

Abstract

The paper investigates the working of the unemployment insurance and social assistance systems during Slovenia's transition, when both systems came under increased pressure. It describes unemployment insurance and social assistance programs, reviews trends in number of beneficiaries and expenditures, and identifies main issues in getting unemployed cash benefit recipients back to work: deficient targeting, too easy access to cash benefits to the better-off, adverse incentives created by cash benefit systems, and doubletrack provision of means-tested assistance to the unemployed.