DOCSLIB.ORG

What Have EU Countries Done to Support Low-Wage Workers in an Era of Downward Wage Pressures?

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
What Have EU Countries Done to Support Low-Wage Workers in an Era of Downward Wage Pressures? IZA DP No. 9390 Stemming the Tide: What Have EU Countries Done to Support Low-Wage Workers in an Era of Downward Wage Pressures? Sarah Marchal Ive Marx September 2015 DISCUSSION PAPER SERIES Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor Stemming the Tide: What Have EU Countries Done to Support Low-Wage Workers in an Era of Downward Wage Pressures? Sarah Marchal Herman Deleeck Centre for Social Policy, University of Antwerp Ive Marx Herman Deleeck Centre for Social Policy, University of Antwerp and IZA Discussion Paper No. 9390 September 2015 IZA P.O. Box 7240 53072 Bonn Germany Phone: +49-228-3894-0 Fax: +49-228-3894-180 E-mail: [email protected] Any opinions expressed here are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but the institute itself takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. IZA Discussion Paper No. 9390 September 2015 ABSTRACT Stemming the Tide: What Have EU Countries Done to Support * Low-Wage Workers in an Era of Downward Wage Pressures? Governments across the EU have been striving to get more people into work while at the same time acknowledging that more needs to be done to ‘make work pay’. Yet this drive comes at a time when structural economic shifts are putting pressure on wages, especially of less skilled workers. This article focuses on trends in minimum wages, income taxes, and work-related benefits within a selection of 16 EU countries, for the period 2001-2012, with three US states included as reference cases. We find evidence for eroding relative minimum wages in various EU countries, yet combined with catch-up growth in the new Member States. We also find that governments counteracted eroding minimum wages through direct income support measures, especially for lone parents. Most prevalent among these were substantial declines in income tax liabilities. More generally we see a trend unfolding towards a fiscalization of income support policies. JEL Classification: I38 Keywords: minimum wage, income support, fiscalization, lone parents Corresponding author: Ive Marx Centre for Social Policy University of Antwerp St Jacobstraat 2 2000 Antwerpen Belgium E-mail: [email protected] * The research for this paper has benefited from financial support by the European Union’s Seventh Framework Programme (FP7/2012‐2016) under grant agreement n° 290613 (ImPRovE: Poverty Reduction in Europe: Social Policy and Innovation; http://improve‐research.eu). The authors would like to thank Tim Goedemé, Bea Cantillon, Lane Kenworthy, the participants to the Autumn Improve Meeting in Budapest, and the participants to the 22nd FISS international conference in Hong Kong for their comments and suggestions. Sarah Marchal gratefully acknowledges a PhD scholarship from the Research Foundation Flanders. The authors are solely responsible for any remaining shortcomings and errors. Table of contents 1 Introduction ............................................................................................................................ 5 2 What governments can do to support low‐wage workers ..................................................... 6 3 Hypotheses on recent trends .................................................................................................. 7 4 Data & Method ...................................................................................................................... 10 5 Results ................................................................................................................................... 12 5.1 Minimum wages under pressure? ........................................................................................ 12 5.2 Do minimum wages protect against poverty? ...................................................................... 17 5.3 Additional government support to boost the incomes of minimum wage workers? .......... 18 5.3.1 Overall trends in net income of minimum wage workers ....................................... 18 5.3.2 Is there a trend towards fiscalization? .................................................................... 22 5.3.3 Are working lone parents deemed more deserving? .............................................. 24 Conclusion ................................................................................................................................... 25 Annex ........................................................................................................................................... 26 References ................................................................................................................................... 28 4 1 Introduction We are living in an era in which intensifying international economic competition and skill‐biased technological change are exerting downward pressures on the wages of workers in rich countries, especially on the wages of relatively low skilled workers. With continuing deindustrialisation, automation and outsourcing, many less skilled workers have come to rely on service sector jobs which cannot be readily outsourced or automated, but where productivity and thus wage gains are also achieved less easily. More workers for relatively fewer jobs may also mean that some people are willing to work for less, potentially driving down wages in that segment, unless minimum wages set a buffer. In addition, there may be increased competition from migrant workers in many countries. Whereas these changes impact on all rich countries, some of them may weigh more heavily within the common market of the European Union. Since the 2004 and 2007 enlargements, workers from the former communist countries of the EU have gradually but altogether rapidly gained free access to the old EU countries, where wages and working conditions tend to be far better than in their home countries, comparatively speaking. This (potential) migration may well be putting considerable pressure on those wages. That pressure need not only come from permanent migrants. Posted workers for example tend to undercut local wages by a wide margin. Yet while wages may be under pressure, especially for the less skilled in the richest countries, in‐work poverty has come front and centre as a policy concern, paradoxically at the same time that ‘a job is the best protection against poverty’ became a central tenet of EU policy (European Commission, 2011). Added to this is an increased concern for child poverty, as a significant number of children in poverty live in families where the full earning potential is already fulfilled, such as lone parent households, or families with low‐educated parents (see e.g. Vandenbroucke & Diris, 2014; Vandenbroucke & Vinck, 2013 for Belgium). With in‐work poverty rates close to ten per cent in the EU (and on the rise) (Eurostat, 2014), policy makers and international organizations proclaim the need to make efforts to increase take‐home pay. Supporting low‐income working households is furthermore necessary to lend credibility to the policy turn towards ‘activation’ and ‘making work pay’ (Weishaupt, 2011). In this paper we assess whether years of growing concern about downward pressure on wages, in‐ work poverty and ‘making work pay’ are actually reflected in increasing policy efforts. We focus on trends in minimum wages, tax relief measures, and benefits in a period of continued European integration and activation reforms. We assess whether we find similar patterns within a selection of 16 EU countries, in the period 2001‐2012. Three US states are included as reference cases, especially because the US is seen as a country where low pay is rife but also where much has been done to support low‐paid workers. More specifically, we ask the questions i) whether increasing pressures on low wages have affected minimum wages, and ii) whether EU countries took measures to stem the tide for working low income families. Moreover, do we find evidence for similar policy instruments, and were similar groups targeted out for support? We focus here on fiscal vs. non‐fiscal policy measures and lone parents vs. breadwinner couples. 5 2 What governments can do to support low‐wage workers Governments have multiple options to support low income working households. Marx et al. (2013) distinguish between direct vs. indirect support (see Table 1), and incremental options (that build on existing arrangements) vs. options that would in most countries require the implementation of entirely new efforts. In this paper, we focus on direct
Load more

Recommended publications
  • Pancreatic Cancer: Multicenter Prospective Data Collection and Analysis by the Hungarian Pancreatic Study Group
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by SZTE Publicatio Repozitórium - SZTE - Repository of Publications original paper Available from: http://www.jgld.ro/wp/archive/y2016/n2/a15 DOI: http://dx.doi.org/10.15403/jgld.2014.1121.252.pcr Pancreatic Cancer: Multicenter Prospective Data Collection and Analysis by the Hungarian Pancreatic Study Group Gábor Lakatos1, Anita Balázs2, Balázs Kui2, Szilárd Gódi3, Ákos Szücs4, Andrea Szentesi2, Zsolt Szentkereszty5, Richárd Szmola6, Dezső Kelemen7, Róbert Papp7, Áron Vincze3, József Czimmer3, Gabriella Pár3, Judit Bajor3, Imre Szabó3, Ferenc Izbéki8, Adrienn Halász8, László Leindler9, Gyula Farkas Jr.9, Tamás Takács2, László Czakó2, Zoltán Szepes2, Péter Hegyi2,10, 11*, Zsuzsanna Kahán12,* 1) Dept. Oncology, St. Istvan Abstract and St. Laszlo Hospital and Out- Patient Department, Budapest; Background & Aims: Pancreatic cancer is a devastating disease with poor prognosis. There is very limited 2) 1st Dept. Medicine, University information available regarding the epidemiology and treatment strategies of pancreatic cancer in Central of Szeged; 3) 1st Dept. Medicine, Europe. The purpose of the study was to prospectively collect and analyze data of pancreatic cancer in the University of Pécs; 4) 1st Dept. Hungarian population. Surgery, Semmelweis University, Methods: The Hungarian Pancreatic Study Group (HPSG) organized prospective, uniform data collection. Budapest; 5) Institute of Surgery, Altogether 354 patients were enrolled from 14 Hungarian centers. Clinical Center, University of Results: Chronic pancreatitis was present in 3.7% of the cases, while 33.7% of the patients had diabetes. Debrecen; 6) Dept. Interventional Family history for pancreatic cancer was positive in 4.8%.
    [Show full text]
  • Budapest Vs. the Countryside
    american chamber of commerce in hungary VOICEVol III. Issue 11, march 2013 BuDa pest vS. thE cOuNtRyside And thE demogRaphIc time bomb MORE INSIDE: Education that serves society Innovation – you can’t do it alone 3 contents 4 introduction 15-19 COVEr STORY 30 AmchAm nEwS Dear Members and Friends… capital vs. countryside New board, new president 5 PEoPLE 31 AmchAm nEwS the glass half full 20-21 COVEr STORY hungarian tax system: 6 PEoPLE the demographic time bomb Swedish taxes with traveling at the speed Ethiopian wages of google 22-23 Lifestyle AmchAm nEwS 7 PEople andrás török’s Budapest 32 adding value, boosting Innovation – you can’t confidence do it alone 24-25 focuS 8 AnALYSiS Education that serves society 33 chAmbEr cornEr Will the largest grow larger? providing a reasoned voice 26 AmchAm nEwS 91-11 AnALYSiS Business news roundup hungary ‘not an island’ 36-37 AmchAm nEwS New members on board 12-13 AnALisys AMCHAm NewS hungary moves deeper 27 38-41 AmchAm nEwS into recession Shifting toward growth photo coverage 14 AnALYSiS 28-29 AmchAm NewS BSE saw a drastic drop in 42 AmchAm nEwS turnover in 2012 a cooperative approach to tax cEO’s note Voice is published on behalf of the American Chamber of Commerce by Absolut Media Zrt., Madách Trade Center, 1075 Budapest, Madách Imre út 13-14., Building A, 8th floor Editor-in-chief: ROBIN MARSHALL ([email protected]) • Contributors: GABRIELLA LOVAS, ROBIN MARSHALL, ANDRÁS TÖRÖK Photography: András HAJnal, LÁZár TodoroFF • Design: ABSOLUT DESIGN STÚDIÓ ([email protected]) • Art director: Tamás TárCZY • CEO: TAMÁS BOTKA Advertising: ABSOLUT MEDIA Zrt.
    [Show full text]
  • EU Mapping of Child Protection Systems Lot 16
    Report of Various Sizes (FRANET) EU mapping of child protection systems Lot 16 – Hungary 2 April 2014 Contents I. Legislative framework and policy developments ................................................... 2 II. Structures and Actors ...................................................................................... 41 III. Capacities ...................................................................................................... 77 IV. Care ........................................................................................................... 91 V. Accountability ............................................................................................... 118 References ........................................................................................................ 166 Annex – Terms and definitions ............................................................................. 183 1 I. Legislative framework and policy developments 1. Overview of the normative framework of the national child protection system. 1. Normative framework: The United Nations Convention on the Rights of the Child (UN CRC) was ratified in 1991 in Hungary1. The new Child Protection Act in accordance with the CRC came into force in November of 19972. Its main goal is to promote the best interests, the protection and wellbeing of children. The normative framework ensures the well- being and the protection of children from violence, exploitation, abuse, neglect, trafficking, child labour, and child separation. The children’s’ rights approach
    [Show full text]
  • The Case of the 2011 Hungarian Higher Education Policy Reforms
    MULTIPLE DIMENSIONS OF HIGHER EDUCATION POLICY: IS THERE A COMMON GOAL? The Case of the 2011 Hungarian Higher Education Policy Reforms by Aniko Toth Submitted to Central European University Department of Political Science In partial fulfillment of the requirements for the degree of Master of Arts in Political Science (2-year) CEU eTD Collection Supervisor: Professor Matteo Fumagalli Budapest, Hungary (2014) ABSTRACT Higher education has been shaped by the effects of globalization, internationalization, and massification. As a result, there are various stakeholders in higher education and there are shifting relations among their interests, which can generate different takes on what direction higher education should head towards. The thesis focuses on the case of the 2011 Hungarian higher education reforms applying a structural approach to reveal the different dimensions the reforms are linked to and to assess the effectiveness of the policies. The macro (global and European patterns of higher education policy), meso (social, political, legal, and economic aspects of Hungarian higher education) and micro levels (students and higher education in Hungary) are revisited keeping the reforms the recurring reference point. The main proposition states that there is a mismatch between the Hungarian policies and the European and global patterns of higher education policy suggesting the existence of a policy-gap that remains unresolved by the reforms. The thesis reveals the gap, and based on the combined assessment of the three-levels of the analysis, it suggests recommendations on the advancement of the policy. ACKNOWLEDGMENTS First of all, I would like to thank my thesis supervisor Professor Matteo Fumagalli for his support, guidance, and important suggestions on my work.
    [Show full text]
  • The Road to Flexibility? Lessons from the New
    THE ROAD TO FLEXIBILITY? LESSONS FROM THE NEW PROEF 1e HUNGARIAN LABOUR CODE T"-/3 G678":/#'* and N'%;8&<< H=3** Abstract As a result of a general revision, a new Labour Code entered into force on 1 July 2012 in Hungary. One of the determining objectives of the recent labour law reform was ‘ exibilisation’, and ensuring that regulation by labour law should be kept to a minimum. e new rules increased the contractual freedom of parties, and particularly the role of collective agreements in the regulation of employment relationships. While maintaining the basic structure of Hungarian labour law, the new Labour Code introduced conceptual changes in several key areas, such as the termination of employment relationships, liability for damages and collective rights. ese changes were justi ed by the government on the grounds that the current labour law regulation was too rigid and that did not re ect the private law foundations of this eld of law su ciently. e article puts this statement under critical review and gives an overview of the most important elements of the labour law reform. In particular, a er a short introduction we will examine what changes the new Labour Code introduced in the hierarchy of legal sources, and what attempts were made to extend the scope of the Labour Code to other forms of employment. Further, we will analyse to what extent the changes introduced by the new Labour Code modi ed the balance between the interests of employees and employers. Finally, we will also give an overview of the relationship between the new Labour Code and EU labour law.
    [Show full text]
  • Immigration Or Emigration Country? Migration Trends and Their Socio-Economic Background in Hungary: a Longer-Term Historical Perspective
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Gödri, Irén; Soltész, Béla; Bodacz-Nagy, Boróka Working Paper Immigration or emigration country? Migration trends and their socio-economic background in Hungary: A longer-term historical perspective. Working Papers on Population, Family and Welfare, No. 19 Provided in Cooperation with: Hungarian Demographic Research Institute, Budapest Suggested Citation: Gödri, Irén; Soltész, Béla; Bodacz-Nagy, Boróka (2014) : Immigration or emigration country? Migration trends and their socio-economic background in Hungary: A longer-term historical perspective., Working Papers on Population, Family and Welfare, No. 19, ISBN 963-7109-92-7, Hungarian Demographic Research Institute, Budapest This Version is available at: http://hdl.handle.net/10419/226462 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence.
    [Show full text]
  • Schult, Tanja, a Hero's Many Faces: Raoul
    Page 1 of 6 Biro, Ruth. Schult, Tanja. A Hero’s Many Faces: Raoul Wallenberg in Contemporary Monuments. The Holocaust and Its Context Series. New York: Palgrave Macmillan, 2012. Pp. 425. Notes, Illustrations, Bibliography, Index. AHEA: E-journal of the American Hungarian Educators Association, Volume 5 (2012): http://ahea.net/e-journal/volume-5-2012 Schult, Tanja, A Hero’s Many Faces: Raoul Wallenberg in Contemporary Monuments. The Holocaust and Its Context Series. New York: Palgrave Macmillan, 2012. Pp. 425. Notes, Illustrations, Bibliography, Index. Reviewed by Ruth G. Biro, Duquesne University This book by Swedish scholar Tanja Schult details 31 monuments in 12 countries on five continents dedicated to Raoul Wallenberg, Swedish diplomat rescuer of Jews in Budapest, Hungary in 1944-1945. The 2012 paperback edition contains some recent additions to her 2009 hardcover volume of the same title, which was a slightly revised version of her doctoral dissertation at Humboldt University, Berlin in 2007. Schult was educated in art history and Scandinavian studies in Erlangen and Lund and is currently a researcher at Stockholm University. The publisher’s series promotes international research on the Holocaust, Holocaust remembrance and interpretation, relevance of the Holocaust issues to contemporary society, and dissemination of innovative Holocaust scholarship in the English-speaking world. Schult presents an interdisciplinary socio-historical approach to Wallenberg monuments that represents the viewpoint of art history and how artists of the works expressed their ideas of Wallenberg’s deeds, fate, and legacy. She examined the dynamics of Wallenberg’s activities, the artistic interpretations of memorials to him, ways in which individuals, groups, and nations have honored Wallenberg, and how his humanitarian actions have come to symbolize moral courage against oppression, resistance to injustices, and the struggle for human rights.
    [Show full text]
  • Download Article (PDF)
    Südosteuropa 63 (2015), no. 2, pp. 249-271 HUNGARY’S PATH TOWARD AN ILLIBERAL SYSTEM ANDRÁS VÉRTES The Hungarian Economy. On the Wrong Trajectory Abstract. Hungary’s economy has lost the past decade. Since the country acceded to the European Union, it has not been able to converge towards the EU average in per capita GDP, whereas the majority of the countries in the Central and East European region have come much closer to it. The general government and the current account balance improved markedly, but in every other field (consumption, investment, competitiveness, attraction of capital, etc.) Hungary’s performance has lagged behind the majority of the countries in the CEE region. This is due both to the former socialist-liberal and the present national-conservative govern- ments. The irresponsible fiscal and unsuccessful reform policy of the former government contributed to the increase of the state debt. The latter government constrained democracy as well as the functioning of a market economy. Nationalisations, market reorganisations, and the deployment of a tax system as a means of punishment have undermined the rule of law and the security of property. As a result, a low growth potential and the widening of inequalities are economic characteristics of Hungary. András Vértes is Chairman of GKI Economic Research Co., Budapest. Introduction For the past decade and a half, analysts of the Hungarian economy, abroad and at home, have been examining the state of affairs with growing surprise. For a long time, they thought that unintended factors coincided, unfavourable trends were temporary in nature, policy decision-makers had bad luck, or some individual wrong decisions led to negative consequences.
    [Show full text]
  • Hungarian Gerontology
    HUNGARIAN GERONTOLOGY Year 4. No. 14. 2012 HUNGARIAN GERONTOLOGY Editorial Board: Editor-in-Chief: Imre Semsei Imre, PhD, DSc Editors: Social Gerontology: Laszlo Ivan, MD, Experimental Gerontology: Miklos Szekely, MD Geriatrics: Bela Szekacs, MD Education: Gyula Bako MD Gerontopsichology: Peter Molnar, MD Life Style: Maria Figler, MD Prevention: Istvan Kiss, MD Társadalomgerontológia: Gergely Fabian, PhD Members of the Board: Laszlo Vertes, MD, Budapest, President Balint Boga, MD, Budapest Erzsebet Csernathné Karandi, Hajduboszormeny Laszlo Dobos, PhD, Miskolc Bela Halmos, MD, Eger Klara Hazafi, MD, Pecs Jozsef Jaszberenyi, PhD, Budapest Karoly Nemeth, MD,Veroce Gyozo Pek, PhD, Debrecen Laszlo Patyan, Nyíregyháza Andrea Ruszwurm, MD, Nagykanizsa Jean S. Szilagyi, Nyiregyhaza Istvan Toth, MD, Miskolc Zita Zekany, MD, Gyula Magdolna Zollei, MD, Szeged Publisher: Faculty of Health, University of Debrecen, 2-4 Sostoi Str., H-4400 Nyiregyhaza Imprint: Imre Semsei, PhD, Gerontology Science Coordination Center, Faculty of Health, University of Debrecen Period of appearance: quarterly On-line version: ISSN: 2062-3690 Technical data: “HUNGARIAN GERONTOLOGY” is a member of the electronic system of the National Library of University of Debrecen (http://magyargerontologia.lib.unideb.hu) Printed version: ISSN: 2062-3682 Press: University Press of Debrecen. 1 Egyetem Sqr., H-4032 Debrecen. Liability: Marta Viragos, PhD HUNGARIAN GERONTOLOGY Year 4, No 14. (2012) CONTENTS EUROPEAN YEAR 2012 „ACTIVE AGING – SOLIDARITY BETWEEN GENERATIONS” oldal Editorial (Imre Semsei, PhD) 1 EUROPEAN YEAR 2012 5 THE EUROPEAN YEAR 2012 IN HUNGARY 33 AGE PLATFORM EUROPE 52 AGE PLATFORM EUROPE IS 10 YEARS OLD 68 ACTIVE AGING 80 Subscription 124 Instruction for Authors 125 EDITORIAL Dear Readers, Year 2012 has been declared by the European Union as the year for “Active Aging – Solidarity between Generations”.
    [Show full text]
  • Cohesion Policy and Perceptions of the European Union in Hungary
    CELINE CANTAT Cohesion Policy and Perceptions of the European Union in Hungary A Cultural Political Economy Approach 2017/8 WORKING PAPER SERIES ABOUT THE PROJECT This study was prepared in the framework of the project “The Impact of Cohesion Policy on EU Identification - COHESIFY” (http://www.cohesify.eu). COHESIFY is a research project funded by the European Union under the Horizon 2020 Program (Grant Agreement nº 693427), running from February 2016 through April 2018. The project investigates whether the performance of the EU’s flagship development policy – Cohesion Policy - influences how people see the EU. The project compares regions in ten countries in the EU to test the importance of the visibility in spending, the extent of local control over selecting priorities and beneficiaries, the significance of political affiliations and the impact of weak performance such as the low absorption rates. The project compares the positions of insiders, such as program designers and administrators, with applicants and beneficiaries, such as local authorities, private companies and civic groups. These attitudes are compared with the views of the general public in the respective regions. These views are gathered through analysis of national and local media reports, social media discussions, and complemented with representative surveys, interviews and focus groups. This paper explores the ways in which a range of actors became involved in negotiating and implementing cohesion funds in Hungary during the two project periods of 2007-13 and 2014-20. ABOUT THE PAPER SERIES Working Papers reflect the on-going work of academic staff members and researchers associated with the Center for Policy Studies/CEU.
    [Show full text]
  • The Role of the Formula 1 Grand Prix in Hungary's Tourism
    BULCSÚ REMENYIK1 – CSILLA MOLNÁR2 The role of the Formula 1 Grand Prix in Hungary’s tourism Abstract Formula 1’s business model is unlike that of any other sports series. F1 is the world’s most-watched annual sports series and attracts more than 400 million television view- ers on every occasion. Hosting an F1 race puts a country on the sporting map and stimu lates curiosity. Income from ticket sales comes to an average of around $33 mil- lion a year and has large influence on the economy, especially on tourism by generating income in the HORECA sector, transportation and other services. Formula 1 races reach a global audience and are keenly followed by avid fans. It is considered to be the most frequented sports event in the world after the Summer Olympic Games marked by high travel numbers. The Formula 1 Hungarian Grand Prix marks an important period for Hungarian tourism, as almost 2 million visitors have visited the Hungaroring during the last 25 years. This sports event attracts international visitors with increased tourist spending, which means a regular and calculable income for hotels and restaurants. The Budapest – Central Danube tourist region, where the Formula 1 Hungarian Grand Prix takes place, is a well-developed and easily accessible area close to the capital city. Keywords: Formula 1, Hungaroring, sports tourism, tourism development, hotel industry JEL codes: Z3, Z2 1 Dr. Bulcsú Remenyik PhD, Budapest Business School, associate professor, [email protected]. 2 Dr. Csilla Molnár PhD, Szent István University, associate professor, [email protected].
    [Show full text]
  • 1 WATER and HEALTH in HUNGARY Report to the 3 Meeting
    WATER AND HEALTH IN HUNGARY Report to the 3rd Meeting of the Parties PART ONE 1. Provide brief information on the process of target-setting in your country, e.g. which public authority(ies) took the leadership and coordinating role, which public authorities were involved, how coordination was ensured, which existing national and international strategies and legislations were taken into account, how cost-benefit analysis of target sets was performed. Hungary ratified the Protocol on Water and Health in 2001, and it came into force by the Government Decree 213/2005 (X. 5.) in October 2005. Implementation of the Protocol began in 2007, coordinated by the Minister of Health and the Minister of Environment and Water. In 2010, the new Government of National Cooperation established major alterations in the government structure and the legal framework, which affected the implementation of the Protocol. The areas covered by the Protocol are shared - on the national level - between the Minister of Human Resources, the Minister of Administration and Justice, the Minister of National Development, the Minister of Rural Development and the Ministry of Interior. The ministers act through the ministries (legal framework) and their national and regional institutional system (implementation). The health related aspects of the Protocol on the local level belong to the National Public Health and Medical Officer’s Service, which was previously (until 2010) under the Ministry of Human Resources. After the governmental reorganization, the national institutions of the Service (National Institute for Environmental Health, National Centre for Epidemiology) remained at the Ministry, while the regional infrastructure was integrated into the capitol and county government offices as public health professional administrative bodies, at the level of districts (capitol districts) they operate as district-level public health institutes.
    [Show full text]