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Long-Term Unemployment in the Czech Republic: Motivation, Obstacles and the Social Assistance System

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  • Magdalena Kotýnková

Abstract

Economic transition in the Czech Republic has created a group of long-term unemployed people, many of whom do not actively seek out employment opportunities and instead rely on social assistance. A number of subjective and objective factors contribute to this problem, including the shifting demands of the labour market, regional variation, workers' attitudes and skill level, and the relationship between social assistance benefits and the minimum wage. This article assesses the issue of workers' motivation. Although there are combinations of factors that result in low motivation to search for jobs, the social assistance system is especially at fault and structural changes must be made to better foster workers' engagement and motivation. The problem with the social assistance system is finding the balance between protecting people from poverty and motivating them to work.

Suggested Citation

  • Magdalena Kotýnková, 2006. "Long-Term Unemployment in the Czech Republic: Motivation, Obstacles and the Social Assistance System," Prague Economic Papers, Prague University of Economics and Business, vol. 2006(2), pages 99-112.
    • Handle: RePEc:prg:jnlpep:v:2006:y:2006:i:2:id:279:p:99-112
    DOI: 10.18267/j.pep.279
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    More about this item

    Keywords

    unemployment; long-term unemployment; labour market; social assistance system; unemployment benefits; social assistance benefits; minimum wage; incentive gap;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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