Wage and Non-Wage Labor Cost in the Czech Republic: The Impact of Fringe Benefits
CERGE-EI Working Paper Series No. 77
25 Pages Posted: 11 Feb 2010
Date Written: November 1, 1994
The paper discusses the development of non-wage benefits in the Czech economy during the transition from a planned to a market economy. It shows a slowly increasing importance of such instruments of attracting best employees as social insurance or subsidized goods and services. Following an initial discussion of the benefit system in the pre-transition Czechoslovak economy, the second section discusses the evolution of the national insurance scheme since the transition. The third section presents some econometric evidence regarding the current extent of non-mandatory fringe benefits provided by individual employers, as well as a discussion of why we believe such benefits are likely to become increasingly important in the coming years.
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