Hypothetical tax-benefit reforms in Hungary: Shifting from tax relief to cash transfers for family support

Michael Christl and Ana Agúndez García
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Ana Agúndez García: JRC Sevilla

No 648, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: This paper evaluates two hypothetical budget-neutral reforms that shift resources from family tax expenditures to family cash transfers. We evaluate these reforms using a structural labor supply model based on the microsimulation EUROMOD model and EU-SILC data. We find that both reforms have an inequality-decreasing impact. However, when looking at labor supply responses for different household types, we show that the reforms have a non-negligible impact, especially for females in couple households. Additionally, we show that females in the middle of the income distribution in particular will reduce labor supply in response to the reforms.

Keywords: family benefits; reform; labor supply; discrete choice; microsimulation; EUROMOD (search for similar items in EconPapers)
JEL-codes: H31 J08 J20 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2023-05
New Economics Papers: this item is included in nep-pub
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http://www.ecineq.org/milano/WP/ECINEQ2023-648.pdf First version, 2023 (application/pdf)

Related works:
Journal Article: Hypothetical Tax-Benefit Reforms in Hungary: Shifting from Tax Relief to Cash Transfers for Family Support (2023)
Working Paper: Hypothetical tax-benefit reforms in Hungary: shifting from tax reliefs to cash transfers for family support (2023)
Working Paper: Hypothetical tax-benefit reforms in Hungary: Shifting from tax relief to cash transfers for family support (2023)
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