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

Author

Publication Date

Jun 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

Volume and page numbers

Volume: 25 , p.126 -151

DOI

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

Publication type

Journal Article

Research area

Tax and benefit systems

Links

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

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

Cid:520603

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