The Equality of Distribution of the EU’s Subsidies and Their Effect on the Unemployment and Employment Rate in the Czech Republic Cover Image

Rozdelenie dotácií z Európskej únie a ich účinok na mieru nezamestnanosti a zamestnanosti v Českej republike
The Equality of Distribution of the EU’s Subsidies and Their Effect on the Unemployment and Employment Rate in the Czech Republic

Author(s): Marie Pechrová
Subject(s): Economy
Published by: Regionálne európske informačné centrum Banská Bystrica
Keywords: European Social Fund; regional unemployment rate; Human Resources and Employment Operational Programme

Summary/Abstract: Article reviews the allocation of subsidies from the European Social Fund, particularly from Human Resources and Employment , among regions in the Czech Republic (CR). Because most financially large projects are implemented by regional authorities. So the subsidies, which were implemented by regional governments, were selected for evaluation . I come to the conclusion that subsidies are distributed relatively equitably relative to the needs of the regions . However, the regions with the highest unemployment (or the lowest employment) should receive more subsidies . Likewise, it is studied the relationship between a measure of unemeployment, gross domestic product per capita and subsidies. Furthermore, it is evaluated by the effect of subsidies on the rate of unemployment by an econometric model. First, the unemployment rate is explained by subsidies and compensation of employees gross domestic product per capita. The effect has proved to be negative, as the higher amount of subsidies received suprisingly lead higther unemployment rate. Only the employment rate explaining the subsidies effect in accordance with prerequisite. Increase the amount received funding allows elevate the employment rate. The undesirable effect of subsidies may be given excessive reliance on external assistance to people and loss of motivation for own activities .

  • Issue Year: 2013
  • Issue No: 1
  • Page Range: 04-29
  • Page Count: 26
  • Language: English