Welfare reform in European countries: a microsimulation analysis
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Welfare reform in European countries : a microsimulation analysis. / Immervoll, Herwig; Kleven, Henrik Jacobsen; Kreiner, Claus Thustrup; Saez, Emmanuel.
I: Economic Journal, Bind 117, Nr. 516, 2007, s. 1–44.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Welfare reform in European countries
T2 - a microsimulation analysis
AU - Immervoll, Herwig
AU - Kleven, Henrik Jacobsen
AU - Kreiner, Claus Thustrup
AU - Saez, Emmanuel
PY - 2007
Y1 - 2007
N2 - This article compares the effects of increasing traditional welfare to introducing in-work benefits in the 15 (pre-enlargement) countries of the European Union. We use a labour supply model encompassing responses to taxes and transfers along both the intensive and extensive margins, and the EUROMOD microsimulation model to estimate current marginal and participation tax rates. We quantify the equity-efficiency trade-off for a range of elasticity parameters. In most countries, because of large existing welfare programmes with high phase-out rates, increasing traditional welfare is undesirable unless the redistributive tastes of the government are extreme. In contrast, the in-work benefit reform is desirable in a very wide set of cases
AB - This article compares the effects of increasing traditional welfare to introducing in-work benefits in the 15 (pre-enlargement) countries of the European Union. We use a labour supply model encompassing responses to taxes and transfers along both the intensive and extensive margins, and the EUROMOD microsimulation model to estimate current marginal and participation tax rates. We quantify the equity-efficiency trade-off for a range of elasticity parameters. In most countries, because of large existing welfare programmes with high phase-out rates, increasing traditional welfare is undesirable unless the redistributive tastes of the government are extreme. In contrast, the in-work benefit reform is desirable in a very wide set of cases
U2 - 10.1111/j.1468-0297.2007.02000.x
DO - 10.1111/j.1468-0297.2007.02000.x
M3 - Journal article
VL - 117
SP - 1
EP - 44
JO - The Economic Journal
JF - The Economic Journal
SN - 0013-0133
IS - 516
ER -
ID: 890578