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Labour Market Participation: The Impact of Social Benefits in the Czech Republic and Selected European Countries

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  • Kamila Fialová
  • Martina Mysíková

Abstract

This paper aims to quantify the impact of social benefits on labour market participation in the Czech Republic and provides a comparison with selected European countries. It applies the logistic regression to estimate the probability of labour market participation depending on social benefits related to net wage of the individuals, controlling for individual and household characteristics. Our results indicate that the work disincentives via social benefits do exist in most of the included countries and they proved to be relatively strong in the Czech Republic. When trying to understand the reasons for recently decreasing participation rate in the Czech Republic, the often called "generous" Czech social benefit system appears to be relevant.

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Bibliographic Info

Article provided by University of Economics, Prague in its journal Prague Economic Papers.

Volume (Year): 2009 (2009)
Issue (Month): 3 ()
Pages: 235-250

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Handle: RePEc:prg:jnlpep:v:2009:y:2009:i:3:id:352:p:235-250

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Related research

Keywords: social benefits; labour market participation; inactivity trap;

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References

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  1. Herwig Immervoll & Cathal O’Donoghue, 2003. "Employment Transitions in 13 European Countries. Levels, Distributions and Determining Factors of Net Replacement Rates," CESifo Working Paper Series 1091, CESifo Group Munich.
  2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  3. Florence Jaumotte, 2003. "Female Labour Force Participation: Past Trends and Main Determinants in OECD Countries," OECD Economics Department Working Papers 376, OECD Publishing.
  4. Giuseppe Carone & Aino Salomaki, 2004. "Reforms In Tax-Benefit Systems In Order To Increase Employment Incentives In The Eu," Labor and Demography 0410005, EconWPA.
  5. Giuseppe Carone & Herwig Immervoll & Dominique Paturot & Aino Salomäki, 2004. "Indicators of Unemployment and Low-Wage Traps: Marginal Effective Tax Rates on Employment Incomes," OECD Social, Employment and Migration Working Papers 18, OECD Publishing.
  6. Snower, Dennis J, 1995. "Evaluating Unemployment Policies: What Do the Underlying Theories Tell Us?," Oxford Review of Economic Policy, Oxford University Press, vol. 11(1), pages 110-35, Spring.
  7. Dennis J. Snower, 1995. "Evaluating Unemployment Policies," IMF Working Papers 95/7, International Monetary Fund.
  8. Stuart O. Schweitzer & Ralph E. Smith, 1974. "The persistence of the discouraged worker effect," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 27(2), pages 249-260, January.
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Cited by:
  1. Leoš Vítek, 2011. "Fiscal Instruments of a Support of the Families with Children and their Changes in Developed Countries," European Financial and Accounting Journal, University of Economics, Prague, vol. 2011(4), pages 60-84.

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