engleski

Measuring the Impact of Self-employment Subsidies on Unemployment in Croata

Subsidies are a form of government transfer payments allocated to certain individuals or groups of beneficiaries, who are awarded said funds based on social, economic or other predefined and prescribed criteria. Self-employment subsidies are a form of financial support awarded to unemployed persons with the intention of starting their own businesses, in order to increase the employment rate in Republic of Croatia. Basic objective of this paper is to examine the impact of government self-employment subsidies on the number of unemployed persons, i.e. to determine the existence and the nature of the effect of self-employment subsidies on the number of unemployed persons. All counties in Republic of Croatia and the City of Zagreb were included in this analysis, as well as all relevant data for the time period from 2011 to 2018. The conducted analysis encompassed data sorted by year and county. Research results indicate a positive correlation between the observed variables, which means that the increase in unemployment leads to an increase in funds the government allocates to self – employment incentives. In the long run, this leads to a decline in unemployment.

transfer payments, self- employment subsidies, number of unemployed persons, analysis

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