Recent changes in housing policies and their distributional impact across Europe - Research note 10/2016 by Francesco Figari, Katarina Hollan, Manos Matsaganis and Eszter Zolyomi (2016) This research note aims to explore how housing allowances and mortgage interest tax relief have evolved in recent years, against the background of falling disposable incomes and rising housing costs. The analysis focuses on seven EU countries (Greece, Italy, Austria, Hungary, the Netherlands, Sweden and the UK), covering a range of housing market developments and housing policy responses. The first part of the research note provides an overview of housing market trends over the period following the financial crisis and examines recent changes in housing policies in the countries concerned. The next part discusses the main features of two specific housing policy instruments, housing allowance and mortgage interest tax relief, also exploring recent changes there and the motives behind these. The last part estimates the distributional impact of housing allowances and mortgage tax relief in 2016 as compared with 2007 using the European tax-benefit model EUROMOD. The research note concludes with a discussion of the results and of the policy implications.
Labour market situation and social inclusion of migrants - Research note 8/2016 by Erhan Őzdemir, Terry Ward, Eszter Zólyomi and Lucia Mytna Kureková (2016) This Research Note is divided into two parts. The first part examines the income of migrants relative to the native-born population and how it changed over 2007-2013, a period in which economic recession was followed by at best low growth in most parts of the EU. It considers, in particular, those on low income and the potential reasons why more of them are both in the bottom income quintile and at risk of poverty than the native-born, specifically with regard to their age structure, their employment situation, their education level and their household circumstances. It examines also their access to social protection, in specific, to unemployment benefits and healthcare, and their housing conditions, in both cases in relation to the native-born population and how the situation has changed over recent years. The main focus is on whether there is any evidence of their income and living conditions converging towards those of the native-born since 2007.
The second part examines social attitudes of migrants, again in relation to those of the native-born population, including their trust in institutions and people; their social values, their voting patterns and other forms of civic and political participation, the extent to which they feel part of society and their perception of the extent of discrimination; and social belonging. The analysis is based on data from the European Social Survey (ESS). As in the first part, a particular interest is in the way that these aspects have changed in recent years and the extent to which they have come closer to the native-born in these respects.
Low incentives to work at the extensive and intensive margin in selected EU countries - Research note 4/2016 by H. Xavier Jara, Katrin Gasior and Mattia Makovec (2016) 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 research note is to provide a comparative analysis of work incentives in selected EU countries. Our analysis makes use of EUROMOD and representative household microdata from nine EU countries (Belgium, Bulgaria, Germany, Italy, Lithuania, Hungary, Austria, Finland and the UK) to provide a description of the distribution of short- and long-term participation tax rates and marginal effective tax rates in 2015, for people currently in work; and to characterise individuals facing low work incentives. Our results highlight the important variation in the distribution of work incentives across our selected countries. Unemployment insurance schemes play a significant role in short-term participation tax rates, although to different extents across countries. Our analysis further highlights differences across countries in terms of the population subgroups with low incentives to work and discusses the relevance of using a relative or an absolute threshold for such definition.
Making work pay - A conceptual paper - Research note 3/2016 by Manos Matsaganis and Francesco Figari (2016) Boosting the incomes of poor families while simultaneously enhancing the incentive to take up a job (if currently out of work), or to work longer hours (if currently employed part-time), is a key policy goal in Europe and beyond. This conceptual paper explains how work incentives may be measured, describes the main features of (and the issues raised by) in-work benefits, and outlines the potential contribution of the European tax-benefit model EUROMOD to further research on work incentives and in-work benefits in EU member states.
Nowcasting: timely indicators for monitoring risk of poverty in 2014-2016 - Research note 1/2016 by Katrin Gasior and Olga Rastrigina (2016) The at-risk-of-poverty rate (AROP) is one of the three indicators used for monitoring progress towards the Europe 2020 poverty and social exclusion reduction target. Timeliness of this indicator is crucial for monitoring of the social situation and of the effectiveness of tax and benefit policies. However, partly due to the complexity of EU-SILC data collection, estimates of the number of people at risk of poverty are published with a significant delay. This paper extends and updates previous work on estimating (‘nowcasting’) indicators of poverty risk using the tax-benefit microsimulation model EUROMOD. The model’s routines are enhanced with additional adjustments to the EU-SILC based input data in order to capture changes in the employment characteristics of the population since the data were collected. The nowcasting method is applied to twenty-seven EU Member States. Median income and AROP rates are estimated up to 2016. The performance of the method is assessed by comparing the predictions with actual EU-SILC indicators for the years for which the latter are available. If nowcasts are unreliable we explain the main reasons behind the differences between the nowcasted and SILC-based indicators. For countries with stable and reliable results we discuss the main drivers behind the nowcasted trends.
Investing in children - Breaking the cycle of disadvantage - A study of national policies: Cyprus (2016) Investing in children - Breaking the cycle of disadvantage - A study of national policies: Cyprus
EU Network of Independent Experts on Social Inclusion. Study of national policies - Czech Republic (2016) EU Network of Independent Experts on Social Inclusion. Study of national policies - Czech Republic
EU Network of Independent Experts on Social Inclusion: Study of national policies - Denmark (2016) EU Network of Independent Experts on Social Inclusion: Study of national policies - Denmark
EU Network of Independent Experts on Social Inclusion: Study of national policies - Estonia (2016) EU Network of Independent Experts on Social Inclusion: Study of national policies - Estonia
Investing in children: Breaking the cycle of disadvantage - A study of national policies: Ireland (2016)