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Hypothetical tax-benefit reforms in Hungary: Shifting from tax relief to cash transfers for family support. A new GLO Discussion Paper by Ana Agúndez García and GLO Fellow Michael Christl.

A new GLO Discussion Paper finds that reforms have an inequality-decreasing impact. 

Michael Christl

GLO Discussion Paper No. 1281, 2023

Hypothetical tax-benefit reforms in Hungary: Shifting from tax relief to cash transfers for family support – Download PDF
by Agúndez García, Ana & Christl, Michael

GLO Fellow Michael Christl

Author Abstract: This paper evaluates two hypothetical budget-neutral reforms that shift resources from family tax expenditures to family cash transfers. We evaluate these reforms using a structural labor supply model based on the microsimulation EUROMOD model and EUSILC data. We find that both reforms have an inequality-decreasing impact. However, when looking at labor supply responses for different household types, we show that the reforms have a non-negligible impact, especially for females in couple households. Additionally, we show that females in the middle of the income distribution in particular will reduce labor supply in response to the reforms.

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Journal of Population Economics (JOPE)
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JUST PUBLISHED
Vol. 36, Issue 3, July 2023: 26 articles on: Aspirations and preferences; Environment, Weather, Climate; Family; Fertility; Historical demography; Ageing, pensions, social security; Migration
https://link.springer.com/journal/148/volumes-and-issues/36-3

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