IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2003y2003i3id409.html
   My bibliography  Save this article

Nezaměstnanost a pracovní pobídky
[Unemployment and work incentives]

Author

Listed:
  • Tomáš Sirovátka
  • Martin Žižlavský

Abstract

In this paper we explore how unemployment benefits and other social benefits affect work incentives in the Czech Republic. We test the link between replacement rates and reservation wages taking duration of unemployment into account and we specify validity of the outlined model using replacement rates and reservation wages recognised in the sample of the unemployed. We conclude that replacement rates are high only in case of specific family types (incomplete families and families with children where women have lost the job), low skilled categories of the unemployed. Reservation wages are linked mainly to the economic and social status of the unemployed and seem to be raised by replacement rates of benefits only with the category of the unskilled. Besides low efficiency of job search, insecurity of job tenure and insecurity of future benefits entitlements raise the price of the status of the unemployed and push reservation wages up.

Suggested Citation

  • Tomáš Sirovátka & Martin Žižlavský, 2003. "Nezaměstnanost a pracovní pobídky
    [Unemployment and work incentives]
    ," Politická ekonomie, University of Economics, Prague, vol. 2003(3).
  • Handle: RePEc:prg:jnlpol:v:2003:y:2003:i:3:id:409
    as

    Download full text from publisher

    File URL: http://www.vse.cz/polek/409
    Download Restriction: free of charge

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    replacement rate; reservation wage; work incentives;

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:2003:y:2003:i:3:id:409. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frantisek Sokolovsky). General contact details of provider: http://edirc.repec.org/data/uevsecz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.