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



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.

Suggested Citation

  • Kamila Fialová & Martina Mysíková, 2009. "Labor Market Participation: The Impact of Social Benefits in the Czech Republic," Working Papers IES 2009/04, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jan 2009.
  • Handle: RePEc:fau:wpaper:wp2009_04

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    inactivity trap; labor market participation; social benefits;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, 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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