Determinants of Inequality Trends in the Czech Republic from 1992 to 2016

• Název práce v češtině: Determinanty vývoje nerovnosti v České republice v letech 1992-2016
• Název v anglickém jazyce: Determinants of Inequality Trends in the Czech Republic from 1992 to 2016
• Akademický rok vypsání: 2022/2023
• Typ práce: bakalářská práce
• Jazyk práce: angličtina
• Ústav: Institut ekonomických studií (23-IES)
• Vedoucí / školitel: Mgr. Marek Šedivý, Ph.D.
• Řešitel: skrytý - zadáno vedoucím/školitelem
• Datum přihlášení: 29.03.2023
• Datum zadání: 29.03.2023
• Datum a čas obhajoby: 12.09.2023 09:00
• Místo konání obhajoby: Opletalova, O314, místnost. č. 314
• Datum odevzdání elektronické podoby: 01.08.2023
• Datum proběhlé obhajoby: 12.09.2023
• Oponenti: doc. Ing. Tomáš Cahlík, CSc.

Seznam odborné literatury

Bourguignon, François and Fournier, Martin and Gurgand, Marc, Distribution, Development and Education: Taiwan, 1979-1994 (May 1998). Available at SSRN: https://ssrn.com/abstract=587202 or http://dx.doi.org/10.2139/ssrn.587202

Ferreira, Francisco H. G. and Paes de Barros, Ricardo, The Slippery Slope: Explaining the Increase in Extreme Poverty in Urban Brazil, 1976-96 (October 1999). Available at SSRN: https://ssrn.com/abstract=623967

Cerniauskas, N., Sologon, D., O’Donoghue, C., Tarasonis, L.: Income inequality and redistribution in lithuania: the role of policy, labour market, income and demographics. Review of Income and Wealth (2021)

DiNardo, J., Fortin, N. M., Lemieux, T.: Labor market institutions and the distribution of wages, 1973-1992: a semiparametric approach. Econometrica 64(5), 1001–1044 (1996)

Lisina A., Van Kerm P.: Understanding Twenty Years of Inequality and Poverty Trends in Russia. Review of Income and Wealth, Series 68, Number S1, April 2022, DOI: 10.1111/roiw.12574

Vecernik J.: Earnings Distribution in Czechoslovakia: Intertemporal Changes and International Comparison, European Sociological Review , Dec., 1991, Vol. 7, No. 3, Special Edition on Eastern Europe (Dec., 1991), pp. 237-252, Published by: Oxford University Press, Stable URL: https://www.jstor.org/stable/522692

Vecernik J., The changing role of education in the distribution of earnings and household income: The Czech Republic, 1988-2009, Economics of Transition Volume 21(1) 2013, 111–133 DOI: 10.1111/ecot.12002

Předběžná náplň práce v anglickém jazyce

Research question and motivation
The aim of this work is to explore the inequality in the Czech Republic from 1992 to 2016. After the fall of communism in 1989, Czechia went through an economic transformation to the market economy. The composition of economy was therefore changed enormously, for example with privatization of some state ownership assets in 1992. The transition presented the population several opportunities within the market, supported economic growth and connected the country to the international trade. Many studies were done on this topic in the Czech Republic, however this thesis would try to analyze via decomposition method.

Contribution
Income inequality is a pervasive issue and the movement should be analyzed occasionally. This work will not only do that for the specific period but the methodology of decomposition might give more evidence of what drives the inequality in Czechia. Also the data provided from LIS are well-supplied and adjusted to do inceome inequality, even for the Czech Republic.

Methodology
The thesis would analyse the inequality with this data with decomposition methods such as micro-simulation technique used by BOURGUIGNON et al. (1998). As VAN KERM et al. (2021) worked with three potential determinants, the thesis would discover possible impacts of changes in earning structures (effects of earnings from public and private sectors, pensions or other public transfers and income sources), labour force participant behaviours (how employment rate or status and type of employment influence the inequality) and finally socio-demographic structure of population (to observe the forces of household type, composition, structure, number of children or pensioners, age etc.).

Therefore the economic structure in the Czech Republic was altering substantially during the period, and this thesis would like to investigate the wage inequality across the population with data provided by LIS from 1992 to 2016 with decomposition methods and poverty/inequality indexes. The Luxembourg Income Study (LIS) is a cross-national data centre conducting comparative research between countries exploring socio-economic outcomes. The database consists of microdata on income, employment, wealth and both individuals’ and households’ demographics from many countries, including Czechia. LIS provides eight datasets in the period desired, and their source is from Czech Statistical Office (ČSÚ).

Outline

Introduction
Research question, referring previous literature, providing an insight of the methodology.

Literature review
A summary of relatable works about the income inequality research in the Czech Republic. In addition, results of other income inequality studies in countries like Taiwan, Russia, Brazil or Lithuania that were examined by decomposition methods will be briefly mentioned.

Data
The source, the process of how they were obtained, details about the database and work usage, variables and their description are all discussed in this section.

Methodology
Explaining the decomposition method, including its steps and computations, involving the regression analysis while defining the models.

Results
It composes of tables, graphs and primarily interpretations of outcomes.

Conclusion
Summarizing the findings and contribution of the work, reflecting the technique and making suggestions for future work.