We present a new general-equilibrium behavioural microsimulation model designed to assess long-run macroeconomic and fiscal consequences of reforms to the tax and transfer system. General-equilibrium feedback effects are simulated by embedding microsimulation in a parsimonious macro model of a...

A large share of workers receives bonus payments besides their base wage. The benefits of flexible wage components in remuneration are twofold: they can incentivize workers and make it easier to adjust wages downward in response to negative shocks. Using data on bonus payments of Hungarian...

In November 2005, the Hungarian government frontloaded the unemployment benefit path, while kept constant the total benefit amount that could be collected over the unemployment spell. We estimate the effect of this reform on non-employment duration using an interrupted time series design. We...

There is significant heterogeneity in actual skill use within occupations even though occupations are differentiated by the tasks workers should perform during work. Using data on 12 countries which are available both in the Programme for the International Assessment of Adult Competencies survey...

We use the Labor Force Survey and the monthly Revenue Statistics of the Hungarian Central Statistical Office to investigate the short term economic impacts of the CoVid pandemic during its 1st wave. The microdata allow us to investigate the economic crisis beyond the aggregate statistics. The...

Since 2006, the law has changed in a way that the expected wage of the employers has to be at least the double of the minimum wage. The employers who pay less than this amount to their employees are more likely to be audited by the tax authority. According to my hypothesis this change has...

We estimate a double hurdle (DH) model of the Hungarian wage distribution assuming censoring at the minimum wage and wage under-reporting (i.e. compensation consisting of the minimum wage, subject to taxation, and an unreported cash supplement). We estimate the probability of under-reporting for...

We estimate a double hurdle (DH) model of the Hungarian wage distribution assuming censoring at the minimum wage and wage under-reporting (i.e. compensation consisting of the minimum wage, subject to taxation, and an unreported cash supplement). We estimate the probability of under-reporting for...

A main driver of the gender wage gap is that women earn a lower firm-specific wage premium than men. We document the role of flexible wage components in driving both within-firm and between-firm gender differences in firm premia. For this purpose, we link wage survey data on performance payments...

The paper introduces the possibility of coalition government into the theoretical study of political accountability and analyzes the accountability of coalitions as a problem of team production. It is shown that coalition governments can be held accountable in the presence of an electoral...