Redistribution across Europe: How much and to whom?

Bernhard Hammer (), Michael Christl and Silvia De Poli
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Bernhard Hammer: TU Wien and Wittgenstein Centre

No 2021-14, JRC Working Papers on Taxation & Structural Reforms from Joint Research Centre

Abstract: Governments face a potential trade-off between provision for the growing population in retirement and the support of working-age households with low income. Using EUROMOD-based microdata from 28 countries, we (a) quantify the redistribution to the pensioner and non-pensioner populations, (b) study the position of net beneficiaries in the overall income distribution and (c) analyse how taxes and benefits affect the working-age population with low income. Our results provide novel insights into the distributive role of tax-benefit systems across Europe. Interestingly, a strong overall redistribution between households is associated with generous pensions for a portion of the retirees but negatively related to support for low-income households.

Keywords: Redistribution; Welfare state; Inequality; Microsimulation; EUROMOD (search for similar items in EconPapers)
JEL-codes: H11 H23 (search for similar items in EconPapers)
Date: 2021-11
New Economics Papers: this item is included in nep-age, nep-eur, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Redistribution across Europe: How much and to whom? (2021)
Working Paper: Redistribution across Europe: How much and to whom? (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ipt:taxref:202114

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