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The Effect of Social Transfers on the Level of Unemployment of Disabled in EU

Publication |
2015

Abstract

Employment brings disabled people not only the necessary income for reasonable life, but also serves as an important part of social inclusion. It is rarely stressed in the literature that in order to fi nd a job it is necessary to possess certain level of welfare.

Th e role of the state in providing that for disabled cannot be underestimated. Th is way, social transfers may decrease unemployment among disabled people.

On the other hand, classical literature suggests, that social transfers demotivate people from looking for a job thus increasing unemployment. Th is paper studies the eff ects or reduction in poverty among disabled caused by social transfers on the level of unemployment of disabled in EU countries on macro level.

We use data collected by Eurostat in the European Union Labor Force Survey in 2011. Our results suggest that the bigger is the eff ect of social transfers on the level of poverty, the higher is the unemployment of disabled with only a basic activity diffi culty.

Th e eff ect of reduction in poverty caused by social transfers on unemployment of disabled with limitation in work caused by a health condition and/or a basic activity diffi culty is not statistically signifi cant