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Labor Market Participation: The Impact of Social Benefits in the Czech Republic

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Author Info
Kamila Fialová () (Komerční Banka, Prague, Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)
Martina Mysíková () (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic, Institute of Sociology of the Academy of Sciences, Prague)

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Abstract

This paper aims to quantify the impact of social benefits on labor market participation in the Czech Republic. It applies the logistic regression to estimate the probability of labor market participation depending on social benefits related to net wage of the individuals, controlling for individual and household characteristics (age, presence of spouse and children etc.). The work disincentives via social benefits do exist and proved to be relatively strong. 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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File URL: http://ies.fsv.cuni.cz/default/file/download/id/9986
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Publisher Info
Paper provided by Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies in its series Working Papers IES with number 2009/04.

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Length: 18 pages
Date of creation: Jan 2009
Date of revision: Jan 2009
Handle: RePEc:fau:wpaper:wp2009_04

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Related research
Keywords: inactivity trap; labor market participation; social benefits;

Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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This page was last updated on 2009-12-3.

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