Garcia, Ana Agundez , CHRISTL, MICHAEL
Si
East. Eur. Econ.
Article
Científica
1.3
0.345
02/11/2023
001007675800001
2-s2.0-85161951214
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 reduce labor supply in response to the reforms.
Discrete choice; EUROMOD; family benefits; labor supply; microsimulation; reform