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Employment Transitions in 13 European Countries. Levels, Distributions and Determining Factors of Net Replacement Rates

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Author Info

  • Herwig Immervoll
  • Cathal O’Donoghue

Abstract

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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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2003/wp-cesifo-2003-11/cesifo1_wp1091.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1091.

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Date of creation: 2003
Date of revision:
Handle: RePEc:ces:ceswps:_1091

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Keywords: net replacement rate; unemployment benefits; work incentives European Union; microsimulation;

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References

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  1. Herwig Immervoll & Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Emmanuel Saez, 2007. "Welfare reform in European countries: a microsimulation analysis," Economic Journal, Royal Economic Society, vol. 117(516), pages 1-44, 01.
  2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  3. Herwig Immervoll, 2003. "The Distribution Of Average And Marginal Effective Tax Rates In European Union Member States," Public Economics 0302005, EconWPA.
  4. repec:ese:emodwp:em9-01 is not listed on IDEAS
  5. repec:ese:emodwp:em2-02 is not listed on IDEAS
  6. O'Donoghue, Cathal & Sutherland, Holly, 1999. "Accounting for the Family in European Income Tax Systems," Cambridge Journal of Economics, Oxford University Press, vol. 23(5), pages 565-98, September.
  7. repec:ese:emodwp:em1-04 is not listed on IDEAS
  8. repec:fth:eeccco:133 is not listed on IDEAS
  9. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
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Citations

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Cited by:
  1. Herwig Immervoll & Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Nicolaj Verdelin, 2009. "An Evaluation of the Tax-Transfer Treatment of Married Couples in European Countries," OECD Social, Employment and Migration Working Papers 76, OECD Publishing.
  2. Immervoll, Herwig & Kleven, Henrik & Kreiner, Claus Thustrup & Saez, Emmanuel, 2004. "Welfare Reform in European Countries: A Micro-Simulation Analysis," CEPR Discussion Papers 4324, C.E.P.R. Discussion Papers.
  3. Kamila Fialová & Martina Mysíková, 2009. "Labour Market Participation: The Impact of Social Benefits in the Czech Republic and Selected European Countries," Prague Economic Papers, University of Economics, Prague, vol. 2009(3), pages 235-250.
  4. Holly Sutherland & Miles Corak & Christine Lietz & UNICEF Innocenti Research Centre, 2005. "The Impact of Tax and Transfer Systems on Children in the European Union," Innocenti Working Papers inwopa05/30, UNICEF Innocenti Research Centre.
  5. repec:ese:emodwp:em1-04 is not listed on IDEAS
  6. Primoz Dolenc & Milan Vodopivec, 2005. "Does work pay in Slovenia?," Financial Theory and Practice, Institute of Public Finance, vol. 29(4), pages 341-362.
  7. repec:ese:emodwp:em7-04 is not listed on IDEAS
  8. repec:ese:emodwp:em4-05 is not listed on IDEAS
  9. Li, Jinjing & O'Donoghue, Cathal, 2011. "Incentives of Retirement Transition for Elderly Workers: An Analysis of Actual and Simulated Replacement Rates in Ireland," IZA Discussion Papers 5865, Institute for the Study of Labor (IZA).
  10. Wolfgang Ochel, 2005. "Concepts and Measurement of Labour Market Institutions," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 3(4), pages 40-55, 01.
  11. Tangian, Andranik S., 2005. "European welfare state under the policy "make work pay" : Analysis with composite indicators," WSI Discussion Papers 141, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
  12. Giuseppe Carone & Aino Salomaki & Herwig Immervoll & Dominique Paturot, 2004. "Indicators of unemployment and low-wage traps (Marginal effective tax rates on labour)," Labor and Demography 0409007, EconWPA.
  13. repec:ese:emodwp:em7-08 is not listed on IDEAS

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