Exploring Underlying Dimensions of Unemployment Benefits in Slovenia and Enterprise-Level Implications

Abstract

This paper aims to define the underlying dimensions of unemployment benefits in Slovenia using the principal component approach. We identified three determinants of unemployment benefits: the general economic environment, social protection, and the functioning of the labour market. Results of the research show that the poorer the general economic environment, the greater the pressure on unemployment benefits. Second, the more generous the social protection on the labour market is, the higher the pressure on unemployment benefits. Third, poor functioning of the labour market increases the pressure on unemployment benefits, although the last effect was found not to be statistically significant.