Employment Institute - www.iz.sk - logo
slovensky / english

Size of Inclusive Market

Inclusive market must have a certain critical size. On the one hand people from the target population should have a real chance to improve their situation and at the same time this market should operate on market principles.

The volume of the target population is estimated at about 250 000 persons. This figure is probably overstated, since some people from this population work in the shadow economy, and some people have no interest at working at all. The question is, how big these groups are. The number of inclusive employees must relate to the size of target population. Our suggestion is 50 000 (each sixth) to 100 000 (each third). In this interval everyone from the target population has a real chance to find a job, but this chance does not equal certainty. It is also necessary to set the appropriate volume of inclusive services contracts.

The second aspect that determines the size of the inclusive market is an effort to comply with market conditions, e.g. trying to approach perfect competition. To achieve this it is necessary to ensure that we have:

  • a broad and relatively homogeneous supply in the labour market (target population of 300 000 persons)
  • a steady demand in the labour market (inclusive enterprises must have contracts continually)
  • frequent hiring of employees (fixed-time work contract, limited to 2 years)
  • a high demand for services (in order to create at least 50 000 jobs for inclusive employees)
  • open entry on the supply side of inclusive services (inclusive enterprises only need to register)
  • large number of transactions (tens of thousands of orders per year)
  • transparent business (inclusive public procurement)

similar articles: Conference on youth long-term unemployment , Presentation for EPC workshop 20.9.2016 .odp ppt , Páleník: inclusive market in Slovakia .odp ppt , Conference november 2014 , ecosoc/the-social-economy-in-the-european-union


Navigation: