Welfare Reform in European Countries: A Microsimulation Analysis

Immervoll, Herwig; Kleven, Henrik Jacobsen; Kreiner, Claus Thustrup; Saez, Emmanuel

doi:10.1111/j.1468-0297.2007.02000.x

Cited by 281 publications

(324 citation statements)

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“…Starting from τ = h = 0, a small corporate tax reduces the fiscal stance if the participation tax rate is larger than a half t * > 1 / 2. Immervoll, Kleven, Kreiner and Saez (2007) report that participation tax rates are larger than 50% in most European countries. The condition could thus easily be fulfilled, meaning that an increase in the corporate tax rate could potentially worsen the total fiscal stance.…”

Section: Corporate Taxationmentioning

confidence: 99%

The Role of Corporate Taxation in a Large Welfare State

Keuschnigg

2009

Swiss J Economics Statistics

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Summary In comparing the impact of corporate taxation and social insurance on foreign direct investment (FDI) and unemployment, the paper derives four main results: (i) the optimal size of the welfare state depends on the degree of risk-aversion, the unemployment rate and the excess burden of labor taxes. Unemployment partly reflects the country’s exposure to globalization; (ii) corporate taxation and social insurance can have equivalent effects on unemployment and outbound FDI; (iii) while an increase in the corporate tax raises corporate tax revenue, it is likely to worsen total fiscal stance; (iv) a corporate tax should be used to contribute to welfare state financing only in exceptional cases.

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Section: Corporate Taxationmentioning

confidence: 99%

The Role of Corporate Taxation in a Large Welfare State

Keuschnigg

2009

Swiss J Economics Statistics

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“…Disney (2004) reports that the effective contribution rates in the 10 OECD countries dominated by flat-rate systems varied between 14,7 percent in Australia and 23,7 percent in the United Kingdom in 1995. The range in the 12 OECD countries with more earnings-related benefits was between 22,4 percent in Germany and 57,7 percent in Greece.…”

Section: Introductionmentioning

confidence: 99%

Why are more redistributive social security systems smaller? A median voter approach

Koethenbuerger¹,

Poutvaara

Profeta

2007

Oxford Economic Papers

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We suggest a political economy explanation for the stylized fact that intragenerationally more redistributive social security systems are smaller. We relate the stylized fact to an "efficiency-redistribution" trade-off to be resolved by political process. The inefficiency of social security financing is due to endogenous labor supply. Using data on eight European countries, we find that the stylized fact and a considerable degree of cross-country variation in contribution rates can be explained by the median voter model.

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“…Furthermore, they crucially a¤ect the optimal design of tax systems (see, e.g., Saez (2001), Immervoll et al (2007) and Blundell et al (2009)). The elasticities are usually derived using some sort of (structural or reduced form) labor supply model (see, e.g., Aaberge et al (1995Aaberge et al ( , 1999Aaberge et al ( , 2000, Hoynes (1996), Eissa and Hoynes (2004) and Heim (2007Heim ( , 2009).…”

Section: Introductionmentioning

confidence: 99%

Accounting for labor demand effects in structural labor supply models

Peichl

Siegloch

2012

Labour Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.IZA Discussion Paper No. 5350 November 2010 ABSTRACT Accounting for Labor Demand Effects in Structural Labor Supply Models *When assessing the effects of policy reforms on the labor market, most studies only focus on labor supply. The interaction of supply and demand side is not explicitly modeled, which might lead to biased estimates of potential labor market outcomes. This paper proposes a straightforward method to remedy this shortcoming. We use information on firms' labor demand behavior and feed them into a structural labor supply model, completing the partial analysis of the labor market on the microdata level. We show the performance and relevance of our extension by introducing a pure labor supply side reform, the workfare concept, in Germany and simulating the labor market outcome of the reform. We find that demand effects offset about 25 percent of the positive labor supply effect of the policy reform.JEL Classification: J22, J23, J68

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Welfare Reform in European Countries: A Microsimulation Analysis

Cited by 281 publications

References 44 publications

The Role of Corporate Taxation in a Large Welfare State

The Role of Corporate Taxation in a Large Welfare State

Why are more redistributive social security systems smaller? A median voter approach

Accounting for labor demand effects in structural labor supply models

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