Household income in the Czech Republic after 1989: Rising inequality, changing structure

Income surveys covering the period 1988-2004 are used to describe changes in the inequality of household income, their causes and the main factors underlying disparities. The difficulty of measuring family income while adjusting it for household size and composition is analyzed. Basic data on income inequality are presented, while suggesting that an underlying systemic change has led from the "basic needs principle" to the "market reward principle". Changes in the makeup of household income are described along with the factors underlying them, in particular, the shift from demographic to socioeconomic factors. Finally, focus is placed on women's participation in the economy and the combined earnings in couples. In conclusion, a few characteristics of income distribution in the Czech Republic are discussed.