Receiving Assistance in Material Need versus Active Participation in the Labour market: Who Will Win?

Brian König, Gabriela Dováĺová and Ján Košta

Politická ekonomie, 2025, vol. 2025, issue 1, 1-30

Abstract: The paper focuses on identifying the main factors affecting the motivation of labour market participation in connection to the system of assistance in material need and the subsistence minimum. The results of the analysis show that (i) assistance in material need itself lowers the motivation to work, but in Slovakia, the difference between net household income from work after finding a job and the net social income during unemployment is increasing in time; (ii) house-holds with incomes below the subsistence minimum react to these changes most sensitively; and (iii) increases in the assistance in material need negatively affect the motivation to work, especially in those individuals for whom the additional benefit from work is relatively low, i.e., people with a low level of education and mothers with dependent children.

Keywords: Subsistence minimum; assistance in material need; motivation to work; Heckman's selection model (search for similar items in EconPapers)
JEL-codes: C13 C51 J33 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://polek.vse.cz/doi/10.18267/j.polek.1451.html (text/html)
http://polek.vse.cz/doi/10.18267/j.polek.1451.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlpol:v:2025:y:2025:i:1:id:1451:p:1-30

Ordering information: This journal article can be ordered from
Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
http://polek.vse.cz

DOI: 10.18267/j.polek.1451

Access Statistics for this article

Politická ekonomie is currently edited by Jiřina Bulisová

More articles in Politická ekonomie from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().