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Unemployment, Labour Marginalisation, and Deprivation (in English)

Author

Listed:
  • 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)

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.

Suggested Citation

  • Petr Mareš & Tomáš Sirovátka, 2005. "Unemployment, Labour Marginalisation, and Deprivation (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 54-67, January.
    • Handle: RePEc:fau:fauart:v:55:y:2005:i:1-2:p:54-67
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    File URL: http://journal.fsv.cuni.cz/storage/1006_s_054_067.pdf
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    References listed on IDEAS

    as
    1. Esping-Andersen, Gosta, 1999. "Social Foundations of Postindustrial Economies," OUP Catalogue, Oxford University Press, number 9780198742005.
    2. Vladislav Flek & Jiøí Veèerník, 2005. "The Labor Market in the Czech Republic: Trends, Policies, and Attitudes (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 5-24, January.
    3. Burda, Michael C, 1992. "Unemployment, Labour Market Institutions and Structural Change in Eastern Europe," CEPR Discussion Papers 746, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Martin Guzi, 2014. "An Empirical Analysis of Welfare Dependence in the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(5), pages 407-431, November.
    2. Tamar Pkhakadze, 2022. "Improving Youth Unemployment Issues and Further Development of Youth Policies in the European Union member states," Technium Social Sciences Journal, Technium Science, vol. 34(1), pages 521-528, August.
    3. Tamar Pkhakadze, 2022. "Youth unemployment in the European Union and transition period - from education to the labour market," Technium Social Sciences Journal, Technium Science, vol. 35(1), pages 532-540, September.

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    More about this item

    Keywords

    wage curve; wage flexibility; unemployment; panel data;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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