Is work for minimum wage in present system of social benefits in the Czech republic paid off?

Abstract

This bachelor work deals with the question if it is suitable to work for minimum wage in present welfare system in the Czech republic. There is introduced relationship between the minimum wage and unemployment, inflation and technical substitution. It is shown the Czech welfare system as well. The analytical part shows one person and a family with three children concentrated on their income in the case the adults work for the lowest wage in comparison to getting unemployment benefit. To sum up the income of a person and a family is the same even if they work or they are at home and get social welfares. The government guarantees the minimum amount of money for living. Unfortunately solution is not simple. The increase of minimum wage would probably lead to the increase of unemployment and inflation, on the other hand the decrease of social welfare would be impossible owing to programmes of the political parties. That's why it is important to combat against illegal work