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1. Family Policy in Hungary How to Improve the Reconciliation between Work and Family?

Author:
Philip Hemmings
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Hungarian family policy focuses on providing generous options to take time off work to look after children. This system not only contributes to Hungary’s low employment rate but encourages long separation from the labour market, has largely failed to significantly influence fertility rates and is relatively expensive to run. This paper looks at how to shift the policy focus towards reconciling work and family life. Reasons for under-provision in childcare by local governments are discussed and recommendations for further central-government intervention to improve supply are made. Recommendations for reform are also made regarding the complex system of family cash benefits and leave allowances.
Topic:
Labor Issues, Family, Social Services, and Social Roles
Political Geography:
Hungary and Central Europe

2. Economic Survey of Hungary, 2005

Publication Date:
07-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The composition of growth of the Hungarian economy has become healthier and real convergence looks set to be on a sustainable path. While most reforms to establish a flourishing market economy have been carried out and the current government is launching a new reform initiative of "100 Steps", more needs to be done in two broad areas in order to maintain high growth: Achieving a smooth entry into the euro area: Frequently missed policy targets, tensions between the government and the Central Bank and stubbornly high twin deficits have established an unhealthy climate of financial volatility, which contrasts with and may even risk threatening the rather smooth process of real convergence. Increasing trend growth by both raising the employment potential and trend productivity growth: A large share of Hungarians with some work capacity is not working in part because of the way social benefits are designed. Low employment is aggravated by impediments to regional mobility of the labour force. Hungary needs to move further up the value added chain. This process for the time being rests very much on investments by foreign companies while innovative activities and commercial applications of own research remain limited.
Topic:
Development, Economics, and Government
Political Geography:
Eastern Europe and Hungary

3. Economic Survey of Hungary, 2004

Publication Date:
01-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
For Hungary to maintain strong growth, macroeconomic policy has to aim for sound and sustainable public finances, low inflation and maintaining the competitiveness of its FDI-driven export sector. Fiscal consolidation has to focus on lasting structural reforms, which bring down the volume of government expenditure in a sustainable way. Revenue increases buy time for the 2004 budget, but thistime has to be used to implement measures that will durably reduce spending in a medium-term framework. The difficult balancing act for monetary policy between achieving inflation targets and steering the exchange rate for entry into the euro zone could be made easier if fiscal targets are achieved. The move to base future budgets on the joint inflation target is a welcome step to improve co-ordination between the government and the Central Bank and should be continued. In wage setting, the indicative wage guidelines should be used to communicate disinflation in the runup to EMU, and thereby limit the risk of unintended real wage increases. Wage moderation should also be assisted by measures which increase the supply responsiveness of labour. Any room created for tax cuts should be used to reduce Hungary's large tax wedge on labour, which interacts negatively with some social benefit programmes. Large regional disparities should be addressed by measures which increase labour mobility and broaden investment across regions through further improved infrastructure. Business conditions can be further improved by addressing the low level of competition in some network industries and more generally improving the conditions for market entry in the domestic sector. The considerable costs of programmes to reduce the emission of greenhouse gases and also more local air pollutants could be reduced with the wider application of economic instruments. Hungary will only be able to reap the full benefits of European Union accession and EMU entry if it establishes a sound macroeconomic framework, boosts labour force participation and sustains high productivity growth.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
Hungary