J31 - Wage Level and Structure; Wage DifferentialsReturn

The objective of this paper is to analyse the distribution of salaries in the public sector with a focus on employees receiving a salary at the level of minimum wages in the initial period of the COVID-19 pandemic. Among the methods used is the construction of salary distribution models by gender and educational attainment and the creation of predictions using exponential smoothing. The results of the analysis show the highest increase in real salaries among women with the lowest education. The results further show that the highest benefit in terms of the average real monthly salary of both men and women comes from changing the employee's educational attainment from secondary education without A-level examination to secondary education with A-level examination. On the other hand, for women originally with primary education, obtaining an apprenticeship certificate does not have a significant effect on their real salary on average.

The importance of working poverty increased in 2003, owing to the European strategy in which one of the goals was to reduce the number of working people in poverty in the EU. Despite its seriousness, experts have not achieved a uniform theoretical model or definition. The situation is the same for methodology and empirics, which are determined by availability of statistical data. For these reasons, knowledge of working poverty is in its infancy. Therefore, we set a goal to take into account findings from past research into working poverty in the world, focusing primarily on the situation in Slovakia. Based on EU SILC 2016 data, we created our own model of variables in which we assumed that they determine the genesis and manifestations of working poverty in its particular structural components and we measured their intensity using the logistic regression and the decision tree model.

The paper presents an analysis of the development of the gender wage gap in the Czech Republic over the last twenty years, particular attention being paid to the period since 2009. Data on the average and median nominal wage as well as inflationary trends were gathered from the official website of the Czech Statistical Office. Having used the data, the conversion to the average and median real wage was carried out, allowing for a comparison of the current purchasing power of the Czech Republic's population with that in the year 1996. The differences between male and female average and median wages (both nominal and real) were examined. The development trend analysis of the obtained time series was performed adopting parametric (quadratic trend function) and non-parametric (moving averages) approaches. The quality of the chosen trend functions was verified using individual t-tests, total F-test, autocorrelation and partial autocorrelation functions and Durbin-Watson statistics. The results achieved indicate a steady downward trend in the differences between male and female wage levels since 2009.

The paper deals with the so-called small pension reform in the Czech Republic in response to the findings of the Constitutional Court Pl. US 8/07. Through microeconomic modelling of the situation with the help of valid retro data, the development of solidarity and equivalence in the ongoing pension system is analysed in detail, both before and after the so-called small pension reform of basic pension benefits carried out from 2005-2016 in the Czech Republic. The analytical calculations are focused on properly calculating retirement in accordance with Act No. 155/1995 Coll. on pension insurance, as amended, from the perspective of different situations of typified individuals with different incomes (five) and their individual replacement ratio from the perspective of the Czech pension system, which is funded on an ongoing basis. The results quantify the individual replacement rates and are analysed from the perspective of model situations where, despite the enactment of these small pension reform, a high individual replacement ratio still remains for low-income individuals compared with high-income individuals. The analysis shows that the lower the pre-retirement income is, the higher the individual pension benefit itself is in comparison with pre-retirement higher income, and the more it manifests itself in a higher rate of solidarity with the higher individual replacement ratio. Conversely, with an increase in the pre-retirement pension, the benefit income rises, but increases more slowly in relation to the pre-retirement income and the individual replacement ratio decreases significantly. Low-income individuals have a tendency to increase the nationwide replacement rate, while high-income individuals tend to reduce it. In conclusion, the paper also points out the difficulty of achieving ongoing financial sustainability of the pension system in the Czech Republic, where a considerable increase in the so-called awaited dependency ratio (per 100 people) is expected from the 2015 value of 26.6 to 47.8 in 2080 (ceteris paribus).

This article deals with multistate demography approach applied on the labour market. The multistate demography - methodology and history - are briefly described. The application of this method is presented using transitions between economically active and inactive states on the labour market and among economically inactive, employed and unemployed states. Estimation based on the Labour Force Sample Survey (LFSS) for the Czech Republic shows that during the life course (15-64 years of age) the expected length of stay for each state changes depending on the original state and age. Main differences were found for younger (25-40 years) and older (55+ years) persons.

The present paper deals with the development of the gross monthly wage distribution according to the length of the practical experience of employees in the Czech Republic since the beginning of the global economic downturn in 2009, during the course of the crisis and in its aftermath. The gross monthly wage dependence on the length of the practice has been researched, the dependence intensity measurement being a part of the analysis. The trend analysis of gross monthly wage time series differentiated according to the length of the practice having been conducted, forecasts of wage levels for 2015 and 2016 were constructed with the use of the above analysis.

This article analyzes the public-private pay gap in the Czech Republic. To prove the existence of this pay gap and measure for its decomposition, we used Mincer wage equations and Blinder-Oaxaca-based decomposition techniques. Using data from the IV/2012 Quarterly Survey of Average Earnings, an econometrical model intended for regression and decomposition analyses was set. The most important part of the model is the dummy variable representing pertinence to the public sector of the national economy. We found that this dummy was statistically significant throughout the wage distribution, and that the value of its coefficient was negative and rising. This means that public sector employees up from the lowest deciles can be discriminated against in their salaries, and that this potential for discrimination increases as we look at the higher deciles. This finding was further examined by decomposition analysis which showed that on average, public sector employees are better equipped (have better characteristics) but have worse return on them (lower regression coefficients).

This study investigates the relationship between wages and risks of work-related fatalities in the Czech labour market. To prove this relationship, we followed the theory of compensating wage differentials and the theory of hedonic prices. Using data from 2007 Czech labour survey, we econometrically derived three hedonic wage functions. To estimate mortality risks premiums, two of hedonic wage functions used objective measures of fatality risk, one subjectively perceived risk. We found a positive and statistically significant correlation between wages and occupational fatality risks in all three models. The estimated effect was lower for hedonic function with worker's perception of mortality risks. This result implies the workers themselves underestimate the fatality risks that they are exposed. Based on estimated hedonic wage functions, we computed the value of a statistical life (VSL) which indicates the marginal rate of substitution between compensation and mortality risk. The implied value of VSL is 60 million CZK for the model with subjectively perceived risks and 266 million CZK for the models with objective risks in 2009 Czech crowns.

The main objective of this article is to analyse the institutional framework of labour market function. Theoretical literature has created a set of institutional aspects such as employment protection legislation, structure of wage bargaining, taxation of labour, active labour market policies, the system of unemployment benefits. On the basis of these institutional aspects and their setting we can judge general labour market setting or we can determine the dimension of labour market flexibility. Attention is also paid to influence of these institutional aspects on employment or unemployment.

The situation on the labour market in East Germany is difficult since the beginning of economic transition in the early 90's. The reasons for such a situation are complex. The implementation of single currency, the collapse of East Germany's foreign trade, the privatization method and high wages should be mentioned above all. The macroeconomic reasons for the persistently high unemployment rate are supported by microeconomic reasons, too. The unification of Germany was not perceived as a unique chance to reform the outdated German labour market. Active labour market policy measures known from the old Federal Republic of Germany were not as effective as expected.

The paper investigates individual wage determinants in context of classic human capital methodology. Paper tries to confront economic assumptions with empirical findings for the Czech Republic and presents that in view of labour market during late-transition period. Czech labour force is relatively well educated and trained, price of labour is low to be competitive to developed economies. Education of employee plays very important role in wage determination and there are significant increase in returns to human capital during all transition process. But working in some occupation has major individual intensity of influence on wage level than level of education. Education and occupation are strongly correlated each other but nevertheless occupation plays major role in wage determination process. Comparing other results with hypothesis, paper concludes that main assumptions are confirmed by derived findings. Paper supports that wage-age profile, regional differences or gender wage gap are becoming similar to other developed countries.