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

Arbeitspapier

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 taxbenefit 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: EUROMOD Working Paper ; No. EM7/13

Classification and Topics

• Classification: Wirtschaft ; Statistical Simulation Methods: General ; Personal Income, Wealth, and Their Distributions ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Fiscal Policies and Behavior of Economic Agents: Household
• Subject: inequality ; work incentives ; tax-benefit systems ; microsimulation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Jara Tamayo, Holguer Xavier ; Tumino, Alberto
• Event: Veröffentlichung
• (who): University of Essex, Institute for Social and Economic Research (ISER)
• (where): Colchester
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/91665
• Last update: 10.03.2025, 11:44 AM CET