Unemployment, Labour Marginalisation, and Deprivation (in English)

Petr Mareš () and Tomáš Sirovátka ()
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Petr Mareš: Masaryk University in Brno, Faculty of Social Studies, Brno, Czech Republic
Tomáš Sirovátka: Masaryk University in Brno, Faculty of Social Studies, Brno, Czech Republic

Czech Journal of Economics and Finance (Finance a uver), 2005, vol. 55, issue 1-2, 54-67

Abstract: The increase in long-term unemployment and the prolongation of periods of unemployment signals the establishment of a marginalized labor force in the Czech Republic. This paper considers the emerging marginalized groups in the Czech labor market, and their social, mental, and material deprivation. A major determinant of the incidence of unemployment in a person's work career is human capital, indicated by completed education. Material deprivation is most severe in unemployed-affected households with dependents in which the breadwinner's income has been lost. It is also severe in single-parent households. Overall, it is particularly those in the non-qualified labor force who find themselves in a state of permanent material deprivation with respect to a high risk of unemployment. The effects of labor market marginalization on labor market performance are mostly negative due to a diminished employability, and, as a result, declining effective labor supply. A policy response should involve employment tax and benefit reform and the extension of activating measures, mainly of those supporting employability and human capital.

Keywords: wage curve; wage flexibility; unemployment; panel data (search for similar items in EconPapers)
JEL-codes: C23 E24 J31 J64 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:55:y:2005:i:1-2:p:54-67

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