Coherence of Social Transfer Policies and Microsimulation - REDIS
Coordinating Institution:
CEPS / INSTEAD
Contracting Partner(s):
Inspection Générale de la Sécurité Sociale ,
Maastricht Graduate School of Governance (NL)
Other Partner(s):
Conseil Economique et Social
From: 01/04/2007
To: 31/03/2010
Budget: 499,760.00€
Contact(s):
Hausman Pierre
,
Wagener Raymond
Summary
The project REDIS, a joined CEPS – IGSS project cofinanced by the FNR within the VIVRE programme, aims at analysing the coherence and redistributional effects of the Luxembourg system of social transfers (direct taxes, social contributions and social benefits in cash) through the use of microsimulation models. The results of the project will help to design efficient social transfer policies in such a way that poverty traps and inequitable results are avoided. An original aspect of the project is that it uses as input data panel data as well as anonymised microdata coming from administrative files. In 2009 the analytical work done within the project continued to be focused on labour supply and earnings. In particular, a discrete choice model for labour supply was developed on the basis of microsimulation.
Furthermore a model was created for analysing inequality and mobility aspects of professional careers. New modules of the static microsimulation model EUROMOD are being developed in order to simulate the redistributional effects of different pension formula and of the copayments of the health care insurance. As to Luxembourg social policy changes, the redistributional effects of the 2008 - 2009 tax and child benefits reforms were studied. Furthermore the anonymised statistical income datafiles by individuals and fiscal households are regularly completed by new variables and new satellite files on specific aspects, like for example for the detailed calculation of the disposable income, and on pensions.
A new file was added for the year 2007, so that the datafile series is available for the years 2001 to 2007. In order to develop a dynamic cohort microsimulation model on pensions, the project team negotiated a collaboration with the Belgian Federal Planning Bureau, so that REDIS can take advantage of the expertise of the Bureau in the microsimulation field. Three PhD students studying at the Maastricht Graduate School of Governance, two of them with an AFR scholarship, are associated to the project.
One of them working on inequality and mobility aspects of professional careers has submitted her thesis at the beginning of January 2010. The other two are working respectively, on the effects of health care expenditure and on the professional careers of women with children. Through the collaboration with Belgian Planning Bureau, a fourth PhD student from the Maastricht Graduate School of Governance with an AFR scholarship will be associated to the project
Refereed Scientific Publications:
- Liégeois, Philippe; Berger, Frédéric; Islam, Nizamul; Liégeois, Wagener, Raymond. 2009. Cross-Validating Administrative and Survey Datasets through Microsimulation. International Journal of Microsimulation (accepted for publication).
- Sologon, Denisa M., and O'Donoghue, Cathal. 2009. Earnings dynamics and inequality in EU, 1994-2001. Labour Economics (revised version submitted).
Other Publications
- Berger, Frédéric; Islam, Nizamul; Liégeois, Philippe. 2009. Behavioural Microsimulation and Females Labour Supply in Luxembourg
- Sologon, Denisa M. 2009. Earnings dynamics and inequality among men in Luxembourg, 1988-2004: Evidence from administrative data. MGSOG Working Series.
- Sologon, Denisa M., and O'Donoghue, Cathal. 2009. Earnings dynamics and inequality in EU: 1994-2001. SOEPpapers on Multidisciplinary Panel Data Research, No. 184.
- Sologon, Denisa M., and O'Donoghue, Cathal. 2009. Equalizing or disequalizing lifetime earnings differentials? Earnings mobility in the EU: 1994-2001. IZA Working Series, 4642 .
- Sologon, Denisa M., and O'Donoghue, Cathal. 2009. Increased Opportunity to Move Up the Economic Ladder? Earnings Mobility in EU: 1994-2001. IZA Working Series, No. 4311(July).
- Sologon, Denisa M., and O'Donoghue, Cathal. 2009. Policy, Institutional Factors and Earnings Mobility. IZA Working Series, No. 4151(April).
Figure: “Well-being index for the discrete choice modeling of labor supply”