The Risk of the Outflow of Doctors and IT/ICT ... - Outlook Web App

The second factor that is currently acting most intensively towards bringing the level of
earnings and their real purchasing power closer together (generally, and thus for
IT/ICT-specialists as well) between the Czech Republic and the compared countries is
the national consumer price level, or the relations between these levels. The gap of the
Czech level of consumer prices with relation to the compared countries is considerable. The
consumer prices in these countries oscillate around twice that of the Czech price level.
(6) The overall effect of the tax reductions and the level of consumer prices lead to an
expression of the comparable (parity) real purchase power of the average net income, i.e. the
financial amounts available, on average, to an IT/ICT-specialist in the individual countries.
The amount is expressed in thousands of CZK per month. For the “Programmer” profession
these amounts in the individual countries are:
Table 23 Comparable Real Purchasing Power of the Average Wage in the Czech
Republic and Compared Countries (thousands of CZK per month)
Thousands of CZK per Month
Czech Republic 25
Germany 32
Austria 34
Ireland 30
Great Britain 47
In the individual compared countries products and services in the volume expressed by a
financial volume in CZK can be obtained (purchased) by the net income achieved (with the
relative level of this country’s household final consumption expenditures towards the Czech
Republic). A somewhat higher level of products and services can be acquired for the average
net income in Germany, Austria and Ireland than in the Czech Republic (in the equivalent of
5 to 9 thousand CZK, i.e. from 18 to 37%). The difference, of course, is not so significant
as to create an intensive stimulus for the migration of programmers to these countries.
Exceeding the purchase power of available income achieved in the specified countries is
not substantial with regard to financial and personal expenses that a potential emigrant
has when preparing and realising his migration.
Great Britain has a greater gap of net real income compared to the Czech Republic. Net
earnings are higher by 89%.
The purchase power of the average net income of the “Computer System Designer and
Analyst” profession and the degree of related professions is entirely similar and in some
relations even more constricted; in the Czech Republic it is markedly close to the purchase
power in Germany, Austria and Ireland.
The disparity of the average net real wages between the Czech Republic and compared
countries characterises the basic statistics of average relations and tendencies. The specific
proportions can be considerably individualised. Both relations between a wage achieved by a
specific IT/ICT specialist in the Czech Republic and abroad as well as variances between
factual personal consumption and the expense structure of the household consumption have
an effect. The degree of wage savings that the migrants tend towards (in the interest of
transferring funds to the Czech Republic) is limited for these specialists by their social status
abroad. Thus an average relation can be considered to be an acceptable approximation of
prevailing relations.
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