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

Kamila Fialova and Martina Mysíková

No 2009/04, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

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.

Keywords: inactivity trap; labor market participation; social benefits (search for similar items in EconPapers)
JEL-codes: I38 J21 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2009-01, Revised 2009-01
New Economics Papers: this item is included in nep-lab and nep-tra
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Citations: View citations in EconPapers (1)

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