The economics of poverty has still not been thoroughly researched in the Czech Republic, although it is a highly relevant topic. Similarly, the international comparability of poverty indicators remains rather unexplained in the European context. First, we intend to revise the currently most common income-based measure of poverty – at-risk-of poverty rate – by developing a country-specific equivalence scale used for its construction. Second, these estimations will be extended to provide poverty measures that account not only for differences among households but also for within-household inequality. Third, subjective poverty will be analysed and a methodology of measuring subjective income poverty line derived. Fourth, the explanatory power of the indicator of material deprivation will be verified. The transferability of established methodologies will be tested and extended to the European context. The work will piece together the missing and known knowledge about the Czech economics of poverty.
Project publications (total 10, displaying 1 - 10)
This paper aims to extend the knowledge of the relationship between within-couple income distribution and partners’ financial satisfaction, using data from the EU-SILC 2013 for 15 European countries, for the first time including data from Eastern Europe. We find that men’s preferences typically concur with the “traditional” male-breadwinner family model, as husband’s satisfaction decreases with a larger female share of household income.
The methodology used to determine the at-risk-of-poverty rate commonly applied in the European context is often criticised for arbitrary steps in its construction. This study questions the first step – the equivalence scale applied to transform the disposable income of households of different sizes into comparable units. First, we hypothesise that economies of scale are lower in Central-Eastern European countries than in their Western counterparts.
This study uses the intersection approach to estimate Subjective Poverty Lines and implicit subjective equivalence scales for European countries. The subjective poverty lines are derived from the Minimum Income Question included in the 2017 EU–Statistics on Income and Living Conditions data. Subjective equivalence scales differ across the European region, showing lower economies of scale for Eastern European countries.
Severe material deprivation, a dimension of the poverty and social exclusion index, one of Europe 2020 Strategy headline indicators, is defined as enforced lack of at least four of nine specific items. Proposals for modifications in the indicator include the Material and Social Deprivation indicator which is based on an updated set of thirteen items, whereas the choice of the threshold was data-driven.
This paper estimates the youth employment effects of minimum wages in the Visegrád countries: Czechia, Hungary, Poland, and Slovakia. The analyses are based on a regional panel dataset for the period 2003–16. Our results indicate that changes in minimum wages measured as a ratio of regional average wages have not negatively affected youth employment rates in the Visegrád countries at the national level.
This paper proposes a novel methodology for the estimation of subjective poverty lines (SPLs) using a discrete information approach that obviates the potential discomfort of asking respondents directly about the value of their individual SPL. To estimate income SPLs, we utilize the Youden index. Using a simulated data-set, we first show that the level of bias between the estimated SPLs and their corresponding actual values is low.
In 2015 and 2016, we published a study entitled “POVERTY IN THE CZECH REPUBLIC. A Critical Look at EU Indicators”, first in Czech (2015) and later in English (2016). The study aimed to provide a critical look at the design of poverty indicators, considering the frequency of their use and their political significance.
The at-risk-of-poverty rate, the relative income poverty indicator applied in the EU, can be highly sensitive to the equivalence scale used to transform household income to an equivalent for individuals.
Purpose – The authors aim to demonstrate the impact of allowing for unequal intra-household distribution of resources on income poverty and income inequality.
This article analyses the effects of minimum wage on employment in the Czech and Slovak Republics based on 2005–17 EU-SILC data. Our results contribute to the scant literature on minimum wage effects in the Central and Eastern European (CEE) region. While prior empirical findings concurred with the effects of minimum wage on labour market outcomes in CEE countries when the minimum wage is relatively high, there is ambiguity when the minimum wage is relatively low.
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