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 in-work/out-of-work counterfactuals. In particular we compare how the importance of household composition and different income sources varies across countries and for different replacement rate bands. We also show which individual and household characteristics are associated with observed replacement rate levels.
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Paper provided by CESifo GmbH in its series CESifo Working Paper Series with number
CESifo Working Paper No. 1091.
Find related papers by JEL classification: C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
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