The study examines the income redistribution effects of the Hungarian flat-tax and the introduction of the novel family allowance scheme on the basis of administrative data for 2007, 2011 and 2020, which yields more accurate estimates than previous studies based on aggregated or survey data....

This paper examines the effect of childcare availability on maternal employment in Hungary based on 2016 Microcensus data. We exploit the exogenous variation in access to childcare due to informal admission practices based on the date of birth, to identify the effect of childcare availability on...

This paper evaluates a 90-day hiring subsidy designed for young jobseekers aged below 25, introduced in Hungary in 2015 as part of the Youth Guarantee programme. The subsidy covers the total wage cost with no obligation to retain the new hire when the subsidy expires. The analysis is based on...

Disability benefits are costly and tend to reduce labor supply. While costs can be reduced by careful targeting, correcting past eligibility rules or assessment procedures may entail welfare costs. We study a major reform in Hungary that reassessed the health and working capacity of a large...

Disability benefits provide social insurance against the risk of losing working capacity, as well as an important source of income for individuals with disabilities. They are also costly and tend to reduce labor supply. Although spending can be contained by careful targeting, correcting past...

Disability benefits are costly and tend to reduce labor supply. While spending can be contained by careful targeting, correcting past flaws in eligibility rules or assessment procedures may entail welfare costs. We study a major reform in Hungary that reassessed the health and working capacity...

In 2010-2012 new outpatient service locations were established in poor Hungarian microregions. We exploit this quasi-experiment to estimate the extent of substitution between outpatient and inpatient care. Fixed-effects Poisson models on individual-level panel data for years 2008-2015 show that...

In most disability insurance programs beneficiaries lose some or all of their benefits if they earn above an earnings threshold. While intended to screen out applicants with high remaining working capacity, earnings limits can also distort the labor supply of beneficiaries. We develop a simple...

This paper evaluates the effects of the Hungarian disability employment quota, which requires firms over a certain size to employ people with disabilities or pay a noncompliance tax. We employ a regression discontinuity design on firm-level data to estimate the effect on the quota on the...

In most disability insurance programs beneficiaries lose some or all of their benefits if they earn above an earnings threshold. While intended to screen out applicants with high remaining working capacity, earnings limits can also distort the labor supply of beneficiaries. We develop a simple...