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Welfare Reform in European Countries: A Microsimulation Analysis
Abstract
This article compares the effects of increasing traditional welfare to introducing in-work benefits in the 15 (pre-enlargement) countries of the European Union. We use a labour supply model encompassing responses to taxes and transfers along both the intensive and extensive margins, and the EUROMOD microsimulation model to estimate current marginal and participation tax rates. We quantify the equity-efficiency trade-off for a range of elasticity parameters. In most countries, because of large existing welfare programmes with high phase-out rates, increasing traditional welfare is undesirable unless the redistributive tastes of the government are extreme. In contrast, the in-work benefit reform is desirable in a very wide set of cases
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Cited by
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Smeeding, T., & Thévenot, C. (2016) · Academic Pediatrics · doi:10.1016/j.acap.2016.01.011 · Cited by 51
Koebel, K., & Schirle, T. (2016) · Canadian Public Policy · doi:10.3138/cpp.2015-049 · Cited by 34
Metadata
- Authors
- Immervoll, H., Kleven, H. J., Kreiner, C. T., & Saez, E.
- Venue
- The Economic Journal
- Publisher
- Oxford University Press (OUP)
- Published
- 2007-01-01
- Volume
- 117
- Issue
- 516
- Pages
- 1-44
- ISSN
- 0013-0133 (ISSN-L)
- 1468-0297
- OpenAlex
- W2033871359
- Cited by
- 376
- References
- 0
- FWCI
- 86.94
- Type
- journal article
- Language
- en
- Open access
- closed
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- Immervoll, H., Kleven, H. J., Kreiner, C. T., & Saez, E. (2007). Welfare Reform in European Countries: A Microsimulation Analysis. The Economic Journal. https://doi.org/10.1111/j.1468-0297.2007.02000.x
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
