Work Incentives at the Extensive and Intensive Margin in Europe

Work Incentives at the Extensive and Intensive Margin in Europe
Author: H. Xavier Jara
Publisher:
Total Pages:
Release: 2019
Genre:
ISBN:

Tax and benefit systems play an important role in determining work incentives at both, the extensive and the intensive margin of labour supply. The aim of this paper is to provide a comprehensive comparative analysis of work incentives in the EU. Our analysis makes use of microsimulation techniques and representative household surveys from all 28 EU countries to compare the distribution of short- and long-term participation tax rates and marginal effective tax rates across population subgroups. We focus on people currently in work and characterise the population facing low work incentives in each country. Our results highlight the large variation in the distribution of work incentives across EU countries, explained not only by differences in the design of tax-benefit systems, but also by the characteristics of the labour force across countries. Unemployment insurance benefits contribute substantially to short-term participation tax rates and explain on average 20 percentage point difference between work incentives of short- vs. long-term unemployment. Our analysis further highlights the need to use microdata to study differences across countries in terms of the population subgroups facing low incentives to work with the aim to inform the policy debate on potential reforms to make work pay.

Labour Supply and Incentives to Work in Europe

Labour Supply and Incentives to Work in Europe
Author: Ramón Gómez-Salvador
Publisher: Edward Elgar Publishing
Total Pages: 424
Release: 2005-01-01
Genre: Business & Economics
ISBN: 1845425626

Labour Supply and Incentives to Work in Europe highlights recent developments in the labour supply in Europe and gives a detailed assessment of their link with economic policies and labour market institutions. Despite major changes in European labour supply during the past few decades, the existing literature still lacks a comprehensive study of the relationship between labour supply and labour market institutions from a macro perspective.

Guaranteed Minimum Income Schemes in Europe: Landscape and Design

Guaranteed Minimum Income Schemes in Europe: Landscape and Design
Author: Mr. David Coady
Publisher: International Monetary Fund
Total Pages: 40
Release: 2021-07-02
Genre: Business & Economics
ISBN: 1513584375

This paper provides an overview of the design of means-tested Guaranteed Minimum Income schemes, which constitute an important component of social protection systems in European countries. It discusses how key design features differ across countries, including how countries balance the primary objective of poverty alleviation against the desire to both manage the work disincentives inherent in such programs and contain fiscal cost. The analysis finds a clear trade-off between both concerns in practice, with many countries combining low generosity with low benefit withdrawal rates (BWRs) thus prioritizing employment incentives over the primary objective of poverty alleviation. Many countries can reduce this trade off by combining higher generosity with higher BWRs. Countries with very high BWRs should consider reducing these, including through allowing income disregards and time dependent (rather than income-dependent) benefit withdrawal. The work disincentives associated with higher BWRs can also be attenuated through strengthening complementary activation policies that incentivize and support participation in the labor market.

De Gruyter Handbook of Contemporary Welfare States

De Gruyter Handbook of Contemporary Welfare States
Author: Bent Greve
Publisher: Walter de Gruyter GmbH & Co KG
Total Pages: 337
Release: 2022-09-06
Genre: Political Science
ISBN: 3110721821

Globalisation, regionalisation, new technology, demography, voters’ expectations and re-structuring of societies are expected to influence welfare state development for years to come. This handbook analyses how different welfare state models and regimes will be able to cope with contemporary and future challenges, providing a variety of evidence based tools that make it essential reading for students, researchers and policy makers alike.

Decent Incomes for All

Decent Incomes for All
Author: Bea Cantillon
Publisher:
Total Pages: 345
Release: 2019
Genre: Political Science
ISBN: 019084969X

For more than a decade, organizations such as the IMF, OECD, and the ILO have issued concerns about the trend of increased inequality in rich welfare states, while influential thinkers and think tanks have come to agree on at least one central point: globalization and technological progress have exacerbated the existing inequities in social market economies. Across Europe, despite high social spending and work-related welfare reforms, poverty remains a largely intractable problem for policymakers and the persistent reality for citizens.In Decent Incomes for All, the authors shed new light on recent poverty trends in the European Union and the corresponding responses by European welfare states. They analyze the effect of social and fiscal policies before, during, and after the recent economic crisis and study the impact of alternative policy packages on poverty and inequality. The book also explores how social investment and local initiatives of social innovation can contribute to tackling poverty, while recognizing that there are indeed structural constraints on the increase of the social floor and difficult trade-offs involved in reconciling work and poverty reduction. Differences across countries are, however, stark, which suggests that there are lessons to be learned and policy changes to be applied, if the political will exists.

Connecting People with Jobs Reaching Out and Activating Inactive and Unemployed Persons in Bulgaria

Connecting People with Jobs Reaching Out and Activating Inactive and Unemployed Persons in Bulgaria
Author: OECD
Publisher: OECD Publishing
Total Pages: 163
Release: 2022-03-15
Genre:
ISBN: 9264320024

This report on Bulgaria is the eighth country study published in a series of reports looking into how policies connect people with jobs. It provides a detailed analysis of Bulgaria’s inactive and unemployed population and identifies groups of people who would benefit from measures and services provided by Bulgaria’s Public Employment Service.