Name:The economic load middle income groups
Project leader:PhDr. Markéta Horáková, Ph.D.
Team member:doc. Ing. Robert Jahoda, Ph.D. , Ing. Pavel Kofroň , prof. PhDr. Tomáš Sirovátka, CSc.
Project leader-external:
External team member:
Start of project:2008
End of project:2011
Project recipient:RILSA
Project co-recipient:

Currently, due to several circumstances the economic burden on the Czech households is increasing. Thus the middle income groups may be increasingly exposed to economic burden and some groups like families with children may get even closer to the low income groups and similar life situation. From this reason the study aimed to examine to what extent such situations of burdening the middle income groups are emerging and in what extent such developments may be anticipated (period 2008-2011). The study is based on the analysis of the materials which characterise the changes in the benefit-tax system, analysis of household budget surveys, SILC 2009 and 2010 and finally, modelling of the dynamic in 2011.
Summarised, we can the changes in the development of incomes and expenditures in the case of middle income groups in 2008-2011 label as relatively modest. Although touched by the crisis, the incomes of households have increased, partly due to the diminished tax burden and increasing pension benefits. Nevertheless, in the case of employees with children (which are concentrated in lower and lower-middle income brackets mainly) the negative impact of the cuts in benefits related to children and other state social support benefits has been evidenced. Beside, other negative impacts are emerging from the growing housing costs.
The model family analysis has similarly shown that the changes in benefit-tax system have had only minor, rather mixed impact on middle income groups. If the household is not exposed to any particular risk situation, the income situation has been rather improving or modestly deteriorating as a result of housing costs. Longer-term absence of income from economic activity in household leads however to deterioration in the living standard of households. The social system does not guarantee incomes in such a case which would correspond to the accustomed living standard and the household is falling into the lowest income bracket. If we turn to the situation of households with previously regulated rented housing, their living standard has also dropped significantly.