The impact of in-work benefits on employment and poverty

Gerlinde Verbist and Dieter Vandelannoote

No EM4/17, EUROMOD Working Papers from EUROMOD at the Institute for Social and Economic Research

Abstract: This article studies the impact of design characteristics of in-work benefits on employment and poverty in an international comparative setting, taking account of both first and second order labour supply effects. We use the micro-simulation model EUROMOD, which has been enriched with a discrete labour supply model. The analysis is performed for four EU-member states: Belgium, Italy, Poland and Sweden. The results show that design characteristics matter substantially, though the specific effects differ in magnitude across countries, indicating there is no one-size-fits-all solution. Throughout the analysis, numerous trade-offs are uncovered: not only between employment and poverty goals, but also within employment incentives itself (extensive vs. intensive margin). Taking account of behavioural reactions attenuates the impact on poverty outcomes, signalling the importance of bringing these effects into the empirical analysis.

Date: 2017-03-31
New Economics Papers: this item is included in nep-eur and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published

Downloads: (external link)
https://www.iser.essex.ac.uk/wp-content/uploads/fi ... s/euromod/em4-17.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ese:emodwp:em4-17

Access Statistics for this paper

More papers in EUROMOD Working Papers from EUROMOD at the Institute for Social and Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Jonathan Nears ().