Journal Article

Tax-benefit systems, income distribution and work incentives in the European Union

Authors

Publication date

2013

Summary

In this paper we study the impact of tax-benefit systems on income inequality and work incentives across the 27 Member States of the European Union (EU). Using EUROMOD, the EU-wide tax-benefit microsimulation model, we disentangle the role of taxes, benefits and social insurance contributions in influencing country specific Gini coefficients and Marginal Effective Tax Rates. The extent to which tax-benefit systems contribute to income redistribution and provide work incentives at the intensive margin is found to vary considerably across the 27 Member States of the EU. Our results further highlight the presence of a trade-off between income redistribution and work incentives across EU-27 countries.

Published in

International Journal of Microsimulation

Volume and page numbers

6 , 27 -62

ISSN

16

Subjects

Welfare Benefits, Income Dynamics, Microsimulation, and Taxation

Links

http://www.microsimulation.org/ijm/issues/volume-61-spring-2013/

Notes

Freely available on the World Wide Web

Related publications

1. Tax-benefit systems, income distribution and work incentives in the European Union

   Holguer Xavier Jara Tamayo and Alberto Tumino

   EUROMOD Working Paper Series, EM7/13 - 28 Mar 2013 - download  
   1. Welfare Benefits
   2. Microsimulation
   3. Taxation

#521200