The mini-integrated macroeconomic model for poverty analysis : a framework for analyzing the unemployment and poverty effects of fiscal and labor market reforms

The author describes a specialized and less data-intensive version of the Integrated Macroeconomic Model for Poverty Analysis (IMMPA) developed by Ag?or, Izquierdo, and Fofack (2003) and Ag?or, Fernandes, Haddad, and van der Mensbrugghe (2002). The mini-IMMPA focuses only on the"real"side but it offers a more detailed treatment of the labor market (by accounting, for instance, for public education, employment subsidies, and job security provisions) and the tax structure. Simulations of a cut in payroll taxes on unskilled labor show the importance of accounting for the fiscal implications of labor market reforms when assessing their effects on unemployment and poverty.