In the last issue of Public Sector Economics in 2025, Dmitri Blueschke, Klaus Weyerstrass, Reinhard Neck and Miroslav Verbič identify optimal fiscal policies for Slovenia over the next several years under varying assumptions about global economic trends. The article evaluates different policies using the SLOPOL12 macroeconometric model and an intertemporal objective function that incorporates output, unemployment, inflation, the budget deficit, public debt, and the current account.

Osama Shaikh and Selcen Ozturk investigate the effects of labour market spendings on unemployment dynamics across demographics groups in OECD countries, with particular attention to persistent youth unemployment. Through a systematic analysis of the long-run effects of labour market policies, wage dynamics, and labour supply, the article offers evidence-based insights for policymakers to be able to design effective, and context-sensitive policy strategies. 

Sverre Grepperud and Pål Andreas Pedersen explore how pay-for-performance (P4P) schemes can reduce coordination problems between service providers being organized sequentially, showing that targeting the first provider is more effective than targeting the second provider. It also highlights that optimal P4Ps depend on provider characteristics and production chain dynamics. The optimal P4P schemes considered need not be preferable to global budgets since the implementation of the P4P schemes requires relative more information.

Ana Marija Sikirić Simčić identifies a persistent time gap in Croatia between the end of paid parental leave and eligibility for early childhood education and care services. The results confirm its presence and show that it disproportionately affects mothers, many of whom adjust their employment during this period. The findings highlight the need to better align parental leave and early childhood education enrolment policies to promote gender equality and support a better work-life balance for families.

Georgios Kitsoleris and Sara Čulo in a comparative analysis explore the influence of education on social mobility in Croatia and Greece, showing that upward mobility has declined across generations and remains strongly shaped by family educational and occupational background. Despite this, higher levels of education continue to significantly improve individuals’ chances of achieving better occupational outcomes than their parents in both countries.

Josip Visković, Tea Šestanović and Paško Burnać examine the key factors influencing tax morale among university students in Croatia, revealing that trust in institutions, religious principles, and tax knowledge boost tax morale, while politics, social norms, and financial knowledge can reduce it. The findings highlight the need for improved tax education to foster a culture of compliance and support more effective and equitable tax systems.