An empirical analysis of welfare dependence in the Czech Republic

GUZI, Martin. An empirical analysis of welfare dependence in the Czech Republic. Czech Journal of Economics and Finance. 2014, vol. 64, No 5, p. 407-431. ISSN 0015-1920.

Basic information

• Original name: An empirical analysis of welfare dependence in the Czech Republic
• Authors: GUZI, Martin (703 Slovakia, guarantor, belonging to the institution).
• Edition: Czech Journal of Economics and Finance, 2014, 0015-1920.

Other information

• Original language: English
• Type of outcome: Article in a journal
• Field of Study: 50200 5.2 Economics and Business
• Country of publisher: Czech Republic
• Confidentiality degree: is not subject to a state or trade secret
• WWW: URL
• Impact factor: Impact factor: 0.420
• RIV identification code: RIV/00216224:14560/14:00076046
• Organization unit: Faculty of Economics and Administration
• UT WoS: 000346692400004
• Keywords in English: labor supply; welfare trap; net replacement rate

Abstract

The scope of this paper is to empirically test whether the potential disincentive effects of the Czech social security system affected the labor flows from unemployment to employment over the period 1995-2005. Combining individual data from the Czech Labor Force Survey and the Czech Household Income Survey, the analysis exploits the difference between the available social benefits and the net household income when a person is employed. Estimates imply that individuals who receive relatively higher social benefits are also more likely to remain unemployed and it is shown that the groups most affected are those with low education and long spells of unemployment. The paper confirms that the level and persistence of unemployment in the Czech Republic after 2000 can be partly attributed to the nationwide level of social support that constitutes a welfare trap for some individuals.

Links

• EE2.3.30.0037, research and development project: Name: Zaměstnáním nejlepších mladých vědců k rozvoji mezinárodní spolupráce