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

Jara, HX and Tumino, A (2013) 'Tax-benefit systems, income distribution and work incentives in the European Union.' The International Journal of Microsimulation, 6. 27 - 62. ISSN 1747-5864


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In this paper we study the impact of tax-benefit systems on income inequality and work incentivesacross the 27 Member States of the European Union (EU). Using EUROMOD, the EU-wide taxbenefitmicrosimulation model, we disentangle the role of taxes, benefits and social insurancecontributions 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.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Social Sciences > Institute for Social and Economic Research
Depositing User: Jim Jamieson
Date Deposited: 19 Sep 2013 14:14
Last Modified: 02 Jan 2018 12:15

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