Journal Article

Do tax-benefit systems cause high replacement rates? A decompositional analysis using EUROMOD

Authors

Publication date

2011

Summary

This paper considers using a cross-country microsimulation tax-benefit model for Europe, EUROMOD, to simulate the distribution of replacement rates for six European countries, Denmark, France, Germany, Italy, Spain, and the UK. In particular we show the important role of household composition and the presence of other household members' incomes in preserving the standard of living while out of work compared with the impact of the tax-benefit system. Given this strong influence of primary incomes, replacement rates are not necessarily the best indicator of the impact of the tax-benefit system in this respect. We therefore consider in addition an alternative measure, the participation tax rate

Published in

Labour: Review of Labour Economics and Industrial Relations

Volume and page numbers

25 , 126 -151

DOI

http://dx.doi.org/10.1111/j.1467-9914.2010.00501.x

ISSN

16

Subjects

Income Dynamics, Microsimulation, and Taxation

Links

http://serlib0.essex.ac.uk/record=b1599964~S5

Notes

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