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The Effect of Globalization on the Income Inequality
Stárek, Martin ; Cahlík, Tomáš (advisor) ; Zeynalov, Ayaz (referee)
In this thesis, we explore the effect of globalization on the income inequality. We examine some features of methodology used in the majority of research on this topic that can have significant impact on results but they are not addressed in the publicly available research. Firstly, we proposed a new method of normalization that creates more stable data and created a new simple index of globalization using this method. This index then yielded more consistent results than the standard globalization indices. Secondly, we found out the most significant variable in a composite index can have no economic or logical interpretation. This was the case with the effect of mobile cellular subscriptions per 100 people on the income inequality. This means results of composite indeces should be interpreted carefully and a better analysis is probably estimating effects of all underlying variables individually. Moreover, we found that underlying variables in a composite globalization index can have opposite effects on the income inequality. The effects than cancel out, at least partly, and this can lead to smaller, statistically less significant results. Nevertheless, the overall effect of globalization on the income inequality, though statistically not significant, appeared to be negative. This is the case...
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Determinants of income inequality in post-communist Central and Eastern European countries: Role of corruption
Samanchuk, Khrystyna ; Hromádková, Eva (advisor) ; Serdarevič, Goran (referee)
The main purpose of this thesis is to investigate the effect of corruption on income inequality (that could serve as indicator of the welfare of whole society). Since post-communist countries of Central and Eastern Europe had issues with providing effective policies for adapting to the market economy, we want to discover main drivers of this situation. We examined previous researches that suggest both positive and negative correlation between corruption level and income inequality. Main obstacle of the research is inherent heterogeneity present across countries. Our analysis was performed on two datasets: 11 post- communist countries CEE and additional 17 European Union countries. We implemented different estimation methods and discovered that panel Vector autoregressive model is the best choice. Within the panel structure we tackled individual heterogeneity by estimating fixed effects and clustering on the country level, implemented dynamic relationship in the dependent variable and solved endogeneity problem by using instrumental variable. We found that corruption has positive relationship with income inequality. Furthermore, other important drivers are: social spending, education level and unemployment. As a result, we suggested the ways to decrease corruption on the appropriate example of...
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Determinants of poverty in the Czech Republic
Chválová, Martina ; Rychtaříková, Jitka (advisor) ; Šustová, Šárka (referee)
DETERMINANTS OF POVERTY IN THE CZECH REPUBLIC Abstract In this thesis we present the determinants and the current state of poverty in the Czech Republic in 2014. We clearly set out the definition of poverty and delimit various concepts of poverty, that is the old and the new concept of poverty, the subjective versus the objective one, the absolute versus the relative concept, as well as the direct and the indirect plus the prescriptive and the consensual poverty. We also introduce various ways to measure poverty. A substantial part of the theoretical section focuses on the introduced methods and definitions of particular indicators (the at risk of poverty rate, the relative median at risk of poverty gap, the Gini coefficient, the income quintile share ratio, the material deprivation rate). We have used the method of logistic regression and the processed data which were gained from the project Životní podmínky 2014 (The Living Conditions 2014) and EU-SILC 2014. At the same time, still in the theoretical part of the thesis, we also dealt with the causes of poverty and the attitudes towards the poor as sociology, psychology and ethics view them. The analysis has proved that, based on equivalised household income, persons living in households in villages with 2 000-4 999 inhabitants are susceptible to poverty...
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Distributional impacts of meal vouchers
Röhryová, Lenka ; Janský, Petr (advisor) ; Pěkná, Martina (referee)
The thesis aims to analyze distributional impacts of meal voucher sys- tem in the Czech Republic, especially in the context of income inequality between different income groups. In the first part, we study the features of the Czech meal voucher scheme, relevant legislative framework and offer a comparison of the Czech meal voucher system with other European coun- tries. In the second part, we perform an analysis of the redistributive effects of meal allowances on various income deciles, quantify the impact of meal allowances tax exemption on the government budget and simulate replace- ment of current meal allowances by flat meal allowances according to several scenarios. Based on our analysis, the meal allowances tax relief represents burden of 11.3 bn Kč for the state budget. Our findings suggest that current form of meal allowances widens the income gap between beneficiaries and non-beneficiaries, within as well as across the income deciles. The affluent households receive meal allowances more frequently, and moreover, nomin- ally and proportionately higher. We believe a replacement of current meal allowances scheme by one with a flat meal allowances (using the constant budget) would promote income equality. Then, the lower deciles would be- nefit, due to higher share of individuals entitled to the meal...
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Evolution of Russian Middle Class in 1998-2008
Vojtíšková, Kristýna ; Svoboda, Karel (advisor) ; Horák, Slavomír (referee)
The existence of Russian middle class is often perceived as a condition for Russia's democratization and the country's economic progress is often mentioned in connection with the growth of the middle class and henceforth increased popular demand for transparent functioning of public institutions. However economic growth does not necessarily lead to more extensive middle class, especially not when the income inequality rises as was the case of Russia in the particular period. This thesis proves that Russian middle class grew between the years 1998 and 2008, it identifies its specific features and explains its evolution from the perspective of occupation and income. The data from Russian Longitudinal Monitoring Survey, which the thesis is based on, confirm that while the Russian middle class was growing in size, growth in inequality was also observed, especially between cities and countryside and between individual economic sectors.
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Global governance and an analogy with domestic political systems - the impact of income inequality in a society on governance quality
Pašek, Roman ; Parízek, Michal (advisor) ; Dopita, Tomáš (referee)
This paper discusses the issue of global governance, in particular the possibility of the establishment of an institutionalized form of a global government, whose field of action would be determined by global and supranational problems of today's world. One of the obstructions of a quality functioning of such world government could be the measure of income inequality in the world. Hence the submitted paper ponders the question, whether a high measure of income inequality would necessarily thwart the establishment of a global government and it's quality functioning, on the basis of a research of a representative sample of states and the impact of such inequality on the quality of functioning of these domestic systems. Implications for the possible establishment of a global government are then analogically deduced from the conclusions of the aformentioned analysis. These conclusions will help us find out, whether income inequality has a negative or a positive impact on governance quality, or whether there is such a clearly demonstrable connection between these variables at all. The analysis of these variables is possible thanks to the quantifiability of the data that this paper works with and their availability thanks to the research activity of renowned international organizations. Hence the first part of...
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Quantitative Easing and its Impact on Wealth Inequality
Lazar, Stefan-Alexandru ; Taušer, Josef (advisor) ; Čajka, Radek (referee)
The aim of this thesis is to show how the unconventional monetary policy rounds of Quantitative Easing introduced in the United States between 2008 and 2014 have led to an increase in wealth inequality. The need for the thesis arises due to the uncharted nature of QE and because of more and more information is surfacing to light which points to this connection. By analysing the distribution of these funds and adding it to the then base distribution of money supply, this study was able to determine a significant 10 % increase in the Gini Index. Furthermore it highlights how a large portion of wealth was transferred from the middle class over to the top 5 % income households. Starting from a set of assumptions the calculation is performed by extrapolating the data required and by isolating the system from any external variables. The result is a theoretical model meant to describe the mechanism that links Quantitative Easing to wealth inequality. Moreover a detailed comparison is provided with the effect of a conventional monetary policy such as Open-Market Operations. Finally solutions to this issue are being discussed from economical, political and fiscal standpoints.
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Subjective Parameters in Income Inequality Evaluation and Their Measurement
Burkert, Vojtěch ; Vostrovská, Zdenka (advisor) ; Munzi, Tomáš (referee)
This diploma thesis deals with income inequality measurements and concentrates mostly on the subjective parameters that are used in inequality computations. The core of the thesis is an evaluation of data from a survey, in which a questionnaire was completed by 150 people, mostly students and recent graduates. The most surprising finding is that approximately one third of respondents support the absolute invariance principle; eventually, this means a denial of many types of measurements in welfare economics, including the Gini Index. In the questionnaire, the respondents were also supposed to estimate actual Czech income distribution. All groups of respondents, not excluding economists, substantially overestimated the lowest income class size.
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Role technologických změn na příjmové nerovnosti ve Spojených státech
Deskoska, Elena ; Vlčková, Jana (advisor) ; Žamberský, Pavel (referee)
This thesis examines the impact of the technological change on the income inequality in the United States of America. This is done by integrating theoretical and analytical findings about the channels through which technological change affects income inequality.The research is based on century-long income inequality data sets. However, it prioritizes the study of the income inequality in the years between 1970s and 2010s, as this period marks the kick off of the IT technologies and the globalization in the USA. Furthermore it includes an analysis of the role of globalization on the income inequality in the USA. It also accounts for the rest of the inequality triggers that are resulting from the political and economic structure of the country. Lastly it gives a prediction about the future state of the U.S. labor market and wages given the impact of the technologies of the Fourth Industrial Revolution.
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Impact of taxes and social benefits on income inequality and relative poverty in the Czech Republic
Janský, Petr ; Kalíšková, Klára ; Münich, Daniel
International comparisons have long shown that income inequality and the proportion of people at risk of relative poverty in the Czech Republic are among the lowest both in the EU and across the world's most developed countries (OECD). Data from representative surveys on household incomes and expenditures show that the Czech tax and social benefits system has rather little effect on income equality and the risk of poverty. Relatively low variation in gross income, for which the old-age pension system plays a key role, plays a greater part in maintaining the low rates of both measures. If besides direct taxes and social benefits we also take into account the effects of indirect taxation (value added tax and consumer taxes), then we find that the current system reduces income inequality relatively little, and in fact slightly increases the relative poverty risk. 80 % of those in relative poverty and 33 % of other individuals are in receipt of at least one social benefit. Only 38 % of total expenditures on state social support are spent on people who are at risk of relative income poverty. The most potentially effective benefits for reducing relative income inequality and overall poverty rates are benefits in material need (contributions towards basic living costs and accommodation). The most effective instrument for reducing the proportion of the population at risk of relative income poverty is child benefit.
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