Work detail

Distributional impacts of meal vouchers

Author: Bc. Lenka Röhryová
Year: 2014 - summer
Leaders: doc. Petr Janský Ph.D.
Work type: Bachelors
Language: English
Pages: 79
Awards and prizes: B.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good bachelors diploma thesis.
Abstract: 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 allowances, while
the upper-deciles households would see decline in the meal allowances.


Česká Spořitelna


Patria Finance