Thesis (Selection of subject)Thesis (Selection of subject)(version: 368)
Thesis details
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Intergenerational Transmission of Poverty in the Czech Republic
Thesis title in Czech: Mezigenerační přenos chudoby v České republice
Thesis title in English: Intergenerational Transmission of Poverty in the Czech Republic
Academic year of topic announcement: 2023/2024
Thesis type: Bachelor's thesis
Thesis language: angličtina
Department: Institute of Economic Studies (23-IES)
Supervisor: PhDr. Martina Mysíková, Ph.D.
Author: hidden - assigned by the advisor
Date of registration: 13.06.2024
Date of assignment: 13.06.2024
References
Bird, K. (2013). The intergenerational transmission of poverty: An overview. Chronic poverty: Concepts, causes and policy, 60-84.
Corak, M. (2006). Do poor children become poor adults? Lessons from a cross-country comparison of generational earnings mobility. In Dynamics of inequality and poverty (pp. 143-188). Emerald Group Publishing Limited.
Corcoran, M. (1995). Rags to rags: Poverty and mobility in the United States. Annual review of sociology, 21(1), 237-267.
Moore, K. (2005). Thinking about youth poverty through the lenses of chronic poverty, life-course poverty and intergenerational poverty. Chronic Poverty Research Centre Working Paper, (57).
Zdeněk, R., & Lososová, J. (2019). Objective and subjective poverty of households in Czech regions. Demografie, 61(3), 175-85.
Želinský, T., Mysíková, M., & Garner, T.I. (2022). Trends in subjective income poverty rates in the European Union. European Journal of Development Research, 34(5), 2493–2516. DOI: 10.1057/s41287-021-00457-2
Preliminary scope of work in English
Research question and motivation
This thesis aims to study the determinants of intergenerational transmission of poverty in the Czech Republic.
Families can persist in poverty for a long time and through (multiple) generations. The question is whether poverty is a circle and transmitted from parents to children, or whether children from economically poor households can still reach higher economic well-being in adulthood. In this thesis, the analysis of the intergenerational transmission of poverty will be limited to two generations – namely to a retrospective view of current adults into their childhood. The subject of interest will be the probability of being poor in adulthood conditional on family circumstances at the time when the individual was 14 years old.
According to Corak (2006), four in ten children born to low-income parents in the United Kingdom become low-income adults. However, Moore (2005) suggests that poverty is not transferred as a “package”, but as a complex of positive and negative factors that affect an individual’s chances of experiencing poverty. These factors may be intra-household, such as household composition, health, education, productive assets, or extra-household, such as ethnicity, religion, discrimination and many more (Bird, 2013).
Policies focusing on providing social benefits to at-risk-of-poverty households aim to improve their short-term economic well-being. Analysing the seriousness of the transmission of poverty on one’s well-being may contribute to better implementing active social policies and helping those households in the long run. Consequently, this could reduce the share of at-risk-of-poverty households.

Contribution
This thesis should contribute to the existing research on poverty in the Czech Republic and try to explain the intergenerational transmission of poverty using a data survey ranging over the past 20 years. The survey data were collected in 2005 for the first time in the Czech Republic and the most recent data from 2023 will be available at the time of writing this thesis. Thus, the thesis will bring an up-to-date analysis of the topic with a focus on whether the transmission slowed down over the years. There has been no such research conducted in the Czech Republic so far and the results could contribute to social policy activities.

Methodology
The thesis will use the Czech national version of EU-SILC (European Union-Statistics on Income and Living Conditions) data, also called Životní podmínky in the Czech environment. The data are collected by the Czech Statistical Office and the survey serves for official EU statistics on poverty, and related issues. Besides annual core questionnaires, a specific module is included each year. In the years 2005, 2011, 2019, and 2023, the topic of Intergenerational transmission of advantages and disadvantages was surveyed by the module. Thus, the research will contain these four years of cross-sectional microdata.
The EU-SILC data includes both household-level information as well as individual-level variables about all household members aged 16+. The current poverty and economic well-being will be assessed based on household-level characteristics, following the official EU methodological standards. The most commonly utilised poverty indicator in the EU is the so-called “at-risk-of-poverty rate”, but the data allows to analyze a variety of poverty measures, such as material deprivation, social exclusion, as well as subjective poverty measures. The populations identified as “objectively” and “subjectively” poor typically overlap only to a certain degree in the EU countries (Želinský et al., 2022), hence, the significant determinants can be expected to differ as well.
All prime-aged household members are questioned on the retrospective variables about their childhood in the EU-SILC modules. I will use logistic regression with adults defined as poor based on their current household poverty status (utilising various definitions of poverty) as a binary dependent variable.

Outline
1. Introduction
2. Poverty in the EU countries and the Czech Republic
- Concepts of measuring poverty
- CZ vs EU empirics
3. Literature review
4. Methodology
- EU-SILC survey design, data description, definitions of applied variables
- Measurement of intergenerational transmission of poverty
5. Results and discussion
6. Conclusion
 
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