In the text the author mentions
the incentive concerning the minimum wage and social doles.
If people see, that having a
stable job is actually not as profitable as being unemployed, they simply don´t
work. This is basically happening because the government made the conditions
for unemployed people very attractive – they get the minimum wage monthly, and
they don´t need to spend “their precious” time in the work. Moreover, the
conditions for getting the minimum wage by working aren´t very different from
getting the social doles and being unemployed.
One of the main aftermaths of
this problem is huge unemployment. The author remarks, that in this case the
government wasn´t successful in working with incentive, and so there´re reasonable
negative outcomes.
This is actually happening in
Slovakia as well. We´ve got a huge rate of unemployment, because the minimal
wages aren´t bigger comparing to the social doles (maybe by 20 Euros, and
that´s nothing). Therefore the poorest people decided to stay on the doles,
because it´s simply not beneficial to work.
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