The systems of direct taxes and cash benefits in the Member States of the European Union vary considerably in size and structure. We explore their direct impacts on cross-sectional income inequality (termed “redistributive effect” for the purpose of this paper) using EUROMOD, a tax-benefit microsimulation model for the European Union. This relies on harmonised household micro-data representative of each national population together with simulations of entitlements to cash benefits and liabilities for taxes and social contributions. It allows us to draw a more comprehensive – and comparable – picture of the combined effects of transfers and taxes than is usually possible. We decompose the redistributive effect of tax-benefit systems to assess and compare the effectiveness of individual policies at reducing income disparities. The following categories of benefits and taxes are considered both individually and in combination: income taxes, social contributions, cash benefits designed to target the poor or redistribute inter-personally (through means-testing) as well as cash benefits intended to redistribute intra-personally across the lifecycle (through social insurance or contingency-based entitlement). We derive results for the 15 “old” members of the European Union and present them for each country separately as well as for the EU-15 as a whole.

Household Incomes and Redistribution in the European Union; Quantifying the Equalizing Properties of Taxes and Benefits / Immervoll, H; H., Levy; Mantovani, Daniela; C., Lietz; C., O'Donoghue; Sutherland, H; Verbist, G.. - STAMPA. - (2006), pp. 135-166.

Household Incomes and Redistribution in the European Union; Quantifying the Equalizing Properties of Taxes and Benefits

MANTOVANI, Daniela;
2006-01-01

Abstract

The systems of direct taxes and cash benefits in the Member States of the European Union vary considerably in size and structure. We explore their direct impacts on cross-sectional income inequality (termed “redistributive effect” for the purpose of this paper) using EUROMOD, a tax-benefit microsimulation model for the European Union. This relies on harmonised household micro-data representative of each national population together with simulations of entitlements to cash benefits and liabilities for taxes and social contributions. It allows us to draw a more comprehensive – and comparable – picture of the combined effects of transfers and taxes than is usually possible. We decompose the redistributive effect of tax-benefit systems to assess and compare the effectiveness of individual policies at reducing income disparities. The following categories of benefits and taxes are considered both individually and in combination: income taxes, social contributions, cash benefits designed to target the poor or redistribute inter-personally (through means-testing) as well as cash benefits intended to redistribute intra-personally across the lifecycle (through social insurance or contingency-based entitlement). We derive results for the 15 “old” members of the European Union and present them for each country separately as well as for the EU-15 as a whole.
The Distributional Effects of Government Spending and Taxation
9781403996251
Palgrave Macmillan
REGNO UNITO DI GRAN BRETAGNA
Household Incomes and Redistribution in the European Union; Quantifying the Equalizing Properties of Taxes and Benefits / Immervoll, H; H., Levy; Mantovani, Daniela; C., Lietz; C., O'Donoghue; Sutherland, H; Verbist, G.. - STAMPA. - (2006), pp. 135-166.
Immervoll, H; H., Levy; Mantovani, Daniela; C., Lietz; C., O'Donoghue; Sutherland, H; Verbist, G.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11380/607457
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