Publication details

Motivační funkce minimální mzdy: případová studie České republiky

Title in English Motivation function of minimum wage: case study of Czech Republic
Authors

SCHULZ Jaroslav

Year of publication 2018
Type Article in Periodical
Magazine / Source Fórum sociální politiky
MU Faculty or unit

Faculty of Economics and Administration

Citation
web https://www.rilsa.cz/clanek/motivacni-funkce-minimalni-mzdy-pripadova-studie-ceske-republiky/
Keywords Minimum Wage;motivation function;social benefits;incentives to work;participation tax rate;TAXBEN alternative;Czech Republic
Description Article deals with the motivation function of minimum wage under current legislation setting in the Czech Republic in relation to income taxation as well as social benefits. Emphasis is put on housing benefits which belong to significant component of current social system. This corresponds to importance of housing cost for households. The main aim is to consider whether current minimum wage provides sufficient incentives for standardized household to work in an employment relationship. Study is focused on low-income households earning just the minimum wage. As a measure serves disposable household income calculated in relation to their occupational status. Calculations unambiguously point to fact that generally minimum wage in current setting does not provide motivation incentive for households to work. Relative largest incentives have households with children due to generous child EITC.
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