This paper utilises a multi-country microsimulation tax-benefit model for Europe, EUROMOD, to simulate the distribution of net replacement rates for 13 European countries. We look at different types of labour market transitions by comparing household incomes in the current state with simulated...

This paper utilises a multi-country microsimulation tax-benefit model for Europe, EUROMOD, to simulate the distribution of net replacement rates for 13 European countries. We look at different types of labour market transitions by comparing household incomes in the current state with simulated...

We analyze a two-period modell where risk-averse students divide their time between risky education, leisure, and work. The educated can migrate. Wagetax financed transfer to students acts as an insurance, and increases both investment in education and demand for leisure. We drive sufficient...

In labour markets with collective wage bargaining higher progressivity of the labour income tax creates a trade-off. On the one hand, wages are lowered and unemployment decreases, on the other hand, the individual labour supply decision is distorted at the hours-of-work margin. The optimal level...

Changing the income tax progressivity in labour markets with collective wage bargaining generates a trade-off. On the one hand, higher progressivity distorts individual labour supply decisions at the hours-of-work margin, on the other hand, it reduces unemployment by exerting downward pressure...

This paper studies the implications of introducing child care in the human capital production function when assessing the effects of labor income taxation on growth. We develop an OLG model where formal schooling and child care enter the human capital production function as complements and we...

The income tax rate structure introduced in 2007 was changed in 2009. The income tax rates will be lowered in 2010, too. The effects on the wage income tax revenues and on the incentives to work are analyzed. It turns out that "bracket creep" will remain a problem in Germany.

This paper analyzes optimal linear taxes on labor income and savings in a standard two-period life-cycle model with endogenous leisure demands in both periods and non-insurable income risks. Households are subject to skill shocks in both periods of the life-cycle. We allow for completely general...