OECD Social, Employment and Migration Working Papers

ISSN :
1815-199X (online)
DOI :
10.1787/1815199x
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This series is designed to make available to a wider readership selected labour market, social policy and migration studies prepared for use within the OECD. Authorship is usually collective, but principal writers are named. The papers are generally available only in their original language - English or French - with a summary in the other.
 

Average and Marginal Effective Tax Rates Facing Workers in the EU

A Micro-Level Analysis of Levels, Distributions and Driving Factors You or your institution have access to this content

Authors:
Herwig Immervoll
Publication Date
02 Dec 2004
Bibliographic information
No.:
19
Pages
46
DOI
10.1787/652730151886

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  1. Macro-based effective tax rate (ETR) measures do not provide information on the level or distribution of marginal effective tax rates thought to influence household behaviour. They also do not capture differences in average ETRs facing different population sub-groups. I use EUROMOD, an EUwide tax-benefit model, to derive distributions of average and marginal ETR measures for fourteen countries. Results for each country show how many and which types of individuals face different ETR levels. I consider effective tax burdens on labour income as well as the marginal tax rates faced by working men and women. Results are broken down to isolate the influence of income taxes, social contributions and various types of social benefits ...

JEL Classification:
  • C81: Mathematical and Quantitative Methods / Data Collection and Data Estimation Methodology; Computer Programs / Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Analysis
  • D31: Microeconomics / Distribution / Personal Income, Wealth, and Their Distributions
  • H22: Public Economics / Taxation, Subsidies, and Revenue / Incidence