Income differentiation of households in various regions of the Czech Republic

Abstract

The paper deals with income differentiation of households in different regions of the Czech Republic. Actual analysis are based on previous considerations about the origins and dynamics of income disparities in the Czech republic, about the method used to definethe group of respondents, the characteristics of the file with an emphasis on the income variable, the share of social transfers in disposable income, indicators of inequality and poverty assessment of vulnerable households. The primary data sourceare the survey results European Union – Statistics onIncome and Living Conditions in 2005 and 2008. This investigation has become obligatory for the Czech Republic after joining the European Union since 2005. The investigation provides long-term comparative data on income and social situation of households. According to common methodology applied within other EU countries results are compare even between EU member states. To achieve the objectives there will be used following methods: descriptive statistics on the characteristics of income (disposable income of households, the share of social transfers in household disposable income, net cash income of households, average income, revenue deficits). For monitoring the level of income inequality and deepness of poverty will be used Gini coefficient and Lorenz curve. Mentioned characteristics will be compared within the regions of the Czech Republic and the trend will be formulated for the period 2005 - 2008. Household income is one of the decisive factors determining the style of family life, their priorities, to meet their needs, and eisure-time activities. Differences between regions determine preferences and identify opportunities.