English to Croatian Science Mathematics & Statistics Labour market

Definition: average replacement rate over the first year of an unemployment spell.
Example: The net result of these changes is that the replacement ratio has fallen sharply with respect to average earnings. Many more people, especially those with a working partner, are ineligible for benefits, and job search commitments for the unemployed have been strengthened. However, a number of other changes have gone in another direction. Local subsidies for Council housing have been progressively removed with rents doubling in real terms since 1979. A number of subsidies relating to health care, dentistry, school meals, etc, (e.g. medicinal drug prescription charges) have been reduced (except some hidden benefits which increase the benefit replacement ratio). Further compensation for benefit recipients as a result of tax changes (such as a value-added-tax on fuel/heating and other local taxation) has reduced the gap between in- and out-of-work incomes. Hence replacement ratios have unequivocally fallen for those on close-to-average earnings, while the situation for those with low earnings (which have grown more modestly) or who are trying to find low paying work while out of work is less clear.