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Income gap between rural and non-rural households — Case of the Czech Republic

Author

Listed:
  • Radek Zdeněk

    () (University of South Bohemia Faculty of Economics Ceske Budejovice Czech Republic)

  • František Střeleček

    (University of South Bohemia Faculty of Economics Ceske Budejovice Czech Republic)

Abstract

The paper compares incomes of Czech rural and non-rural households and identifies households persisting below the poverty line. The data were taken from the statistical research entitled “Statistics on Income and Living Conditions for 2005 and 2008”. Households were classified according to the municipality size (up to 2,000 inhabitants is rural). Household incomes were assessed according to net annual income per consumer unit. Positive skewness and high kurtosis is a typical feature of household incomes; a similarity with log-normal distribution can be presumed. The difference between rural and non-rural household incomes was significant. In 2005, the share of households with incomes below the poverty line did not significantly differ in rural and non-rural areas. The probability of escape from the group with the lowest incomes seems to be higher in the Czech Republic compared to foreign countries.

Suggested Citation

  • Radek Zdeněk & František Střeleček, 2012. "Income gap between rural and non-rural households — Case of the Czech Republic," Society and Economy, Akadémiai Kiadó, Hungary, vol. 34(3), pages 469-488, September.
  • Handle: RePEc:aka:soceco:v:34:y:2012:i:3:p:469-488
    Note: This paper was supported by the Ministry of Education, Youth and Sports of the Czech Republic as a part of MSM 6007665806 project.
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    More about this item

    Keywords

    household incomes; rural population; income mobility;

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • D10 - Microeconomics - - Household Behavior - - - General

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