State support for companies employing people with disabilities as a tool for labor market stabilization
Abstract
The increasing number of people in risk groups within the labor market has led to growing state interventions. Social support policies regulate the labor market and integrate specific groups, such as people with disabilities, into the workforce. In the Czech Republic, Slovakia, and Hungary, these individuals are recognized as disabled and receive disability pensions. As of March 2022, people with disabilities constituted more than 13% of the Czech Republic's population (Czech Statistical Office, 2023). Governments are continuously adopting measures to eliminate discrimination and support a stable labor market, but addressing the needs of people with disabilities remains challenging with significant socioeconomic and political impacts (IZA, 2016). This study examines how corporations employing people with disabilities respond to increasing government interventions through employer incentives. The research aimed to validate the income equation proposed by Sedláková (2024) for enterprises employing workers with disabilities. Validation was conducted across all countries, despite differing social policies. The study worked with a sample of 14 251 to 14 312 data points from the period 2020 to 2022. Results confirm the income equation's applicability, with adjustments needed for specific firms and countries, such as corporate tax contributions and data management practices. The null hypothesis was rejected annually. The Czech social policy was found to be the most effective, with the lowest unemployment rate and lowest income component from employing workers with disabilities, significantly influencing the labor market with lower costs compared to other countries. Specific adjustments, like reimbursing costs for modifying workplaces, are noteworthy. In Slovakia, these costs can be covered by state funds. Despite the Czech Republic having the lowest average incomes for companies employing people with disabilities, its social policy tools are more effective than those of Slovakia and Hungary in encouraging the employment of this group, reflected in the lowest unemployment rates.
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