Czech Wealth Inequality
| Author: | Bc. Kristýna Popelková |
|---|---|
| Year: | 2016 - summer |
| Leaders: | doc. Petr Janský Ph.D. |
| Consultants: | |
| Work type: | Bachelors |
| Language: | English |
| Pages: | 67 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/162147/ |
| Abstract: | This paper delivers a complex picture of Czech household wealth. The main emphasis is placed on the role of wealth inequality, which is studied with the use of available data. The results suggest that the inequality in the Czech Republic is quite tangible and rather above-average in European context. Currently, the disparities in wealth holdings are further deepening due to expansion of lower and upper classes on behalf of middle class and wealth concentration in the hands of high net worth individuals. Income inequality commonly studied in empirical literature is lower than wealth inequality, the main source of this difference is housing wealth, which constitutes a dominating asset class in household wealth portfolio. Composition of both assets and liabilities is quite stable over time, currency and deposits are the leading form of financial wealth holdings and mortgage loans are the primary instrument responsible for households' indebtedness. Saving by Czech households is decreasing which raises concerns about the future of welfare-state structures that are under pressure of ongoing demographic trends, such as population aging and stagnation. In particular, state-funded pension system, whose unsustainability was detected, is an emerging issue and requires attention of policy authorities. |
