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Propuesta de implantación de políticas de complemento salarial en el Ingreso Mínimo Vital y en el IRPF: un análisis empírico con EUROMOD

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Listed:
  • Miguel Gómez de Antonio

    (Universidad Complutense de Madrid)

  • Noemí Villazán Pellejero

    (Ayuntamiento de Madrid. Consejería Técnica del Area de Gobierno de Economía, Innovación y Hacienda)

Abstract

This paper analyzes the effect of two complementary making work pay policies using EUROMOD. The first policy is targeted to households in severe poverty and has been designed as a wage complement on the Ingreso Mínimo Vital (IMV). The second has a broader coverage and consist on a refundable tax credit for individuals with low wages. We analyze the effects of these policies on poverty, income distribution and labor market participation. The results show that these policies have positive effects on poverty reduction, as they significantly improve the income levels of households participating in the labor market, especially for households with children. At the extensive margin, disincentives to labor market participation are reduced, maintaining adequate levels of protection against unemployment. At the intensive margin, they slightly soften the disincentive on labor market participation of households in severe poverty.

Suggested Citation

  • Miguel Gómez de Antonio & Noemí Villazán Pellejero, 2023. "Propuesta de implantación de políticas de complemento salarial en el Ingreso Mínimo Vital y en el IRPF: un análisis empírico con EUROMOD," Hacienda Pública Española / Review of Public Economics, IEF, vol. 245(2), pages 35-69, June.
    • Handle: RePEc:hpe:journl:y:2023v:245:i:2:p:35-69
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    References listed on IDEAS

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    More about this item

    Keywords

    Income support policies; Ingreso Mínimo Vital (IMV); Personal income tax; Poverty; Redistribution; Marginal effective rates; Micro-simulation; EUROMOD.;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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