Creating recommendations for improvement of efficiency of employment policies aimed at internally displaced persons in Serbia

FREN has been contracted by Group 484 to produce recommendations for improvement of efficiency of employment policies aimed at internally displaced persons in Serbia.

According to the data from the Living Standards Measurement Study from 2007, the internally displaced persons (IDP) represent a particularly vulnerable group on labor market in Serbia with a significantly worse position compared to the total population of Serbia (unemployment rate higher by 22.1 percentage points, while the employment and activity rates are lower by 20.9 and 11.4 percentage points, respectively). According to the same data source, the social transfers represent a large share of IDPs' income: temporary IDP benefit, unemployment benefit, social assisstance and child benefit.

Taking into account the fact that the above mentioned social transfers are necessary in order for the IDPs to maintain the existing level of living standard, the issue becomes how these transfers influence the activity of IDPs at the labor market and whether differently defined transfers, together with the measures of „active“ assisstance might result in more adequate, long-term social inclusion of IDPs, through increase in the number of employed IDPs.

Given that the problem of employment of IDPs is twofold: high inactivity rate and high unemployment rate, the aim of this project is to, in line with the available data, answer two questions: A) what are the mechanisms which could ensure activation of more IDPs on labor market and what is the role of social transfers in this process and B) once the IDPs are activated on labor market, which active assisstance measures are the most efficient in increasing the chances for their employment.