This paper estimates the effect of income taxation and transfers on labour supply at the extensive margin, i.e., the labour force participation. We extend existing structural form methodologies by considering the effect of both taxes and transfers. Non-labour income contains the (hypothetical)...

This paper examines labour market matching in Austria since 2008, with a particular focus on the effects of the COVID-19 pandemic at the regional and sectoral level. We use comprehensive monthly administrative data and apply a standard matching model to estimate Beveridge curves for different...

The analysis of wage benchmarks serves as an input for the assessment of wage developments from a cost competitiveness perspective. The analysis shows a significant wage restraint after the crisis, in particular in countries where unemployment is high. These developments have been supportive of...

The paper studies how high-income taxpayers responded to the introduction of the ‘extraordinary tax on individuals’ in Hungary in 2007. The study is based on a panel of tax returns compiled by the Hungarian Tax Authority for the purposes of this study, containing information on 10 percent of...

This paper reviews recent developments in the theory of optimal income taxation and draws two broad conclusions with respect to the Hungarian personal income tax system. The first conclusion is that the optimal top marginal tax rate is likely to be higher, perhaps substantially, than the actual...

We present a new general-equilibrium behavioural microsimulation model designed to assess long-run macroeconomic and fiscal consequences of reforms to the tax and transfer system. General-equilibrium feedback effects are simulated by embedding microsimulation in a parsimonious macro model of a...

This paper analyses the determinants and impact of labour market reforms in the European Union over the period of 2000-2011. The source of information on reforms is the LABREF database developed in DG ECFIN of the European Commission in cooperation with the Economic Policy Committee of the...

The paper sheds light on developments in labour market matching in the EU after the crisis. First, it analyses the main features of the Beveridge curve and frictional unemployment in EU countries, with a view to isolate temporary changes in the vacancy-unemployment relationship from structural...