Evaluation of disparities in living standards of regions of the Czech Republic

Abstract

This paper focuses on regional differences between the regions of the Czech Republic. We will focus on observation of inequalities between indicators of living in different regions of the Czech Republic. The indicators are evaluated at NUTS 3 (regions), using multivariate statistical techniques - factor analysis and cluster analysis. We have identified the twelve indicators of living standards. Base data was reduced using factor analysis on the three emerging factors: 1) basic characteristics, 2) risk groups, 3) environmental variable. Cluster analysis was compiled groups of regions with similar characteristics. Cluster analysis of the breakdown of the county into three clusters based on selected indicators of living standards. They can be described as a group with higher average and lower standard of living. In the first cluster are only two regions (Liberec Region and Karlovy Vary), the third cluster is composed of Prague and the second cluster includes all other regions of the Czech Republic. To verify the evidence of differences between clusters were calculated by multivariate analysis of variance for the various indicators of living standards. An analysis of variance indicates that significant differences between clusters are caused by the standard of living indicators: GDP (regional), the average wage of women, medical equipment, culture entertainment and recreation, higher education, the disabled handicapped and older people. The data were processed in the program STATISTICA 10th.

Keywords

• regions of the Czech Republic
• living standards
• disparity
• multivariate statistical methods
• factor analysis
• cluster analysis