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The Role of Tax-Benefit Systems in Shaping Economic Insecurity in the European Union

Author

Listed:
  • Olga Cantó

    (Universidad de Alcalá and EQUALITAS)

  • Carmelo García Pérez

    (Universidad de Alcalá)

  • Marina Romaguera de la Cruz

    (UNED and EQUALITAS)

Abstract

This paper aims to understand if differences in European countries’ tax-benefit systems impact on individual levels of economic insecurity beyond their socioeconomic and demographic characteristics, with an additional focus on households with children. We consider 29 European countries and use multilevel modelling techniques to study the simultaneous role of micro and macro determinants on a multidimensional index of economic insecurity. Our results show that larger welfare systems and generous general social risk policies for unemployment, bad health and social exclusion are correlated with lower insecurity levels, also for households with children who may receive other transfers specifically targeted to them.

Suggested Citation

  • Olga Cantó & Carmelo García Pérez & Marina Romaguera de la Cruz, 2023. "The Role of Tax-Benefit Systems in Shaping Economic Insecurity in the European Union," Hacienda Pública Española / Review of Public Economics, IEF, vol. 247(4), pages 7-36, December.
    • Handle: RePEc:hpe:journl:y:2023:v:247:i:4:p:7-36
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic insecurity; Tax-benefit systems; Households with children; Multilevel modelling.;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

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