Baseline results from the new EU27 EUROMOD (2007-2010)

H. Xavier Jara and Holly Sutherland. With Silvia Avram, Paola De Agostini, Francesco Figari, Horacio Levy, Jekaterina Navicke, Alari Paulus, Olga Rastrigina, Iva Tasseva and Alberto Tumino

This paper provides a description of the latest public release of EUROMOD (version F6.0++), a tax-benefit microsimulation model for the EU. First, we briefly report the process of constructing and updating EUROMOD. We then present indicators for income inequality and risk of poverty using EUROMOD and discuss the main reasons for differences between these and EU-SILC based indicators. We further compare EUROMOD indicators across countries and over time between 2007 and 2010. Finally, we provide estimates of marginal effective tax rates (METR) for all 27 EU countries in order to explore the effect of tax and benefit systems on work incentives at the intensive margin. Throughout we highlight both the potential of EUROMOD as a tool for policy analysis and the caveats that should be borne in mind when using it and interpreting results.

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Year of publication:	2013
Authors:	Jara, H. Xavier ; Sutherland, Holly ; Avram, Silivia ; De Agostini, Paola ; Figari, Francesco ; Levy, Horacio ; Navicke, Jekaterina ; Paulus, Alari ; Rastrigina, Olga ; Tasseva, Iva ; Tumino, Alberto
Publisher:	Colchester : Univ. of Essex, ESRC Research Centre on Micro-Social Change
Subject:	microsimulation \| redistribution \| tax-benefit system \| poverty \| inequality \| work incentives \| Umverteilung \| Redistribution \| Armut \| Poverty \| Öffentliche Sozialleistungen \| Social security benefits \| Mikrosimulation \| Microsimulation \| Simulation \| EU-Staaten \| EU countries \| Einkommensverteilung \| Income distribution \| Arbeitsangebot \| Labour supply \| Einkommensteuer \| Income tax \| Steuerinzidenz \| Tax incidence \| Steuersystem \| Tax system