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Fiscal Consolidation and Automatic Stabilization
We analyze how the combined effect of automatic stabilizers and discretionary changes in tax-benefit systems have affected the cushioning of income shocks in the Euro zone and the EU-27 in the period 2007-2014. We propose a new summary measure of the combined effect of automatic stabilizers and discretionary policy changes based on micro data and counter-factual simulation. Discretionary fiscal policy supported the effects of automatic stabilizers in the years 2008 and 2009 but then became much more restrictive. For the Euro zone as a whole, the share of income shocks absorbed by the tax and transfer system declined from 48 percent in 2008 to 24 percent in 2011. For some of the countries most affected by the crisis, the stabilization effect was even negative in some years of the crisis, implying that the tax and transfer system amplified income shocks. We also compare our measure of stabilization to estimates based on macro data.
The Role of Income Support Systems as Income Stabilizers in Times of Crisis
This Policy Brief examines how minimum income support (MIS) schemes contribute to the stabilization of disposable incomes in times of crisis in Europe. MIS systems act as a "safety net of last resort" in many European welfare states, but to varying degrees. The results from the simulation of stylized unemployment shocks hitting labor markets suggest that the tax-transfer system overall contributes to income stabilization in periods of crises. However, the MIS schemes' individual contribution is relatively small, especially as set against the unemployment insurance system.
Who Loses in the Downturn?
Contains fresh knowledge on the effects of the economic downturn on employment and income distribution. This title also contains research papers offering fresh insights into issues such as how wages, employment and incomes are affected by the crisis, which demographic groups are most vulnerable in the recession, and more.
Working from Home Around the Globe
How prevalent is remote work on a global scale? What are the prevailing modes of working arrangements at present? What are the foremost advantages of working from home and on employer's business premises? Is there a need for policy intervention? Our new Global Survey of Working Arrangements provides new insights to answer these questions.
The Recovery and Resilience Facility
Key messages: The Policy Brief analyzes to what extent the funds provided by the Recovery and Resilience Facility (RRF) are used by member states to finance new projects (additionality of public investments). The analysis shows that in the EU-27 there is no significant relationship between the amount of RRF grants (in % of GDP) and the acceleration in public investment. This suggests that RRF funds are mainly used to finance existing investment projects. An in-depth analysis of the National Recovery Resilience Plans of Austria, Belgium, Germany, Spain, Italy and Portugal reveals substantial heterogeneity across countries. The share of new investments projects is smallest in Austria (19%) and Germany (20%) and highest in Belgium (77%). The shares amount to 40% in Spain and to 64% in Italy and Portugal.
Minimum Income Support Systems as Elements of Crisis Resilience in Europe
This paper studies the role of social policies in different European welfare states regarding minimum income protection and active inclusion. The core focus lies on crisis resilience, i.e. the capacity of social policy arrangements to contain poverty and inequality and avoid exclusion before, during and after periods of economic shocks. To achieve this goal, the papier expands its analytical focus to include other tiers of social protection, in particular upstream systems such as unemployment insurance, job retention and employment protection, as they play an additional and potentially prominent role in providing income and job protection in situations of crisis. A mixed-method approach is u...
Redefining European Economic Integration
An innovative, bipartisan and comprehensive account of why European economic integration has been in disarray and how to fix it.
