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Does the Czech Tax and Benefit System Contribute to One of Europe’s Lowest Levels of Relative Income Poverty and Inequality?

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Listed:
  • Petr Janský
  • Klára Kalíšková
  • Daniel Münich

Abstract

The Czech Republic is home to one of the more equal societies in terms of household disposable income, and has the lowest level of relative poverty in Europe. This study shows that Czech market income is quite egalitarian, especially when pensions are included. It finds that the narrowly defined tax-benefit system (i.e., direct taxes and social benefits) does not actually change the poverty rate, and that indirect taxes increase it. It further provides the first estimates of the redistributive effectiveness and targeting of a number of social and tax policies.

Suggested Citation

  • Petr Janský & Klára Kalíšková & Daniel Münich, 2016. "Does the Czech Tax and Benefit System Contribute to One of Europe’s Lowest Levels of Relative Income Poverty and Inequality?," Eastern European Economics, Taylor & Francis Journals, vol. 54(3), pages 191-207, May.
  • Handle: RePEc:mes:eaeuec:v:54:y:2016:i:3:p:191-207
    DOI: 10.1080/00128775.2016.1149035
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