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| Tekijä: | Immervoll, H. (et al.) |
| Otsikko: | Welfare reform in European countries: a microsimulation analysis |
| Lehti: | Economic Journal
2007 : JAN, VOL. 117:516, p. 1-44 |
| Asiasana: | welfare economics reforms simulation models European Union |
| Kieli: | eng |
| Tiivistelmä: | In this paper, compared are the effects of increasing traditional welfare (hereafter as: inc-tr-wf.) to introducing in-work benefits (here as: i-w-bf.) in the 15 European Union (EU) countries. A labour supply model is used encompassing responses to taxes and transfers along the extensive and intensive margins. The EUROMOD micro-simulation model is used to estimate current marginal and participation tax rates. The equity-efficiency trade-off is quantified for a range of elasticity parameters. In most countries, inc-tr-wf. is undesirable unless the redistributive tastes of the government are extreme. By contrast, the i-w-bf. reform is desirable in a very wide set of cases. |
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