Table 7 List of variables

Active

Binary indicator that equals 1 if the person is economically active in the income reference period.

Employed

Binary indicator that equals 1 if the person is employed in the income reference period.

Gains to work (logGTW)

Variable defined as annual net wage minus the difference between social benefits if not working and social benefits if working.

Non-labour income (logNY)

Variable defined as a sum of two components, namely non-labour income of all household members (for example, pensions, income from property, parental allowance, unemployment benefit, dividend payments) and labour income of other members of the household.

Female

Binary variable that equals 1 if the person is woman, 0 if man.

Age

Variable indicating the person’s age.

Years of work experience

Variable representing the person’s work experience in years.

Education group dummies

3 binary variables are created based on ISCED classification (EDU: primary [reference cat.], EDU: secondary, EDU: tertiary). If the person belongs to a group according to his highest degree awarded, the corresponding binary variable equals 1, otherwise 0.

Chronic disease

Binary indicator that equals to 1 if the person reports a chronic/long-standing disease.

Parent with child under 3 years

Binary indicator that equals to 1 if the person is a parent of a child that is younger than 3 years.

Parent with child over 3 years

Binary indicator that equals to 1 if the person is a parent of a child that is over 3 years old.

Student

Binary indicator that equals to 1 if the person is a student, 0 otherwise.

Pensioner

Binary indicator that equals to 1 if the person is a pensioner, 0 otherwise.

Working partner

Person has a working partner.

Married

Binary indicator that equals to 1 if the person is married, 0 otherwise.

Separated, divorced, or widowed

Binary indicator that equals to 1 if the person is separated, divorced, or widowed, 0 otherwise.

Degree of urbanization

3 binary variables are created based on the number of inhabitants of the area where the person resides (dense [reference category], average, sparse). If the person belongs to a group according to the degree of urbanization of his residence, the corresponding dummy variable equals 1, otherwise 0.

Regional dummies

8 binary variables are created based on NUTS3 classification (REG: Bratislava [reference cat.], REG: Trnava, REG: Trencin, REG: Nitra, REG: Zilina, REG: Banska Bystrica, REG: Presov, REG: Kosice). If the person belongs to a group, the corresponding binary variable equals 1, otherwise 0.