Work Packages
Work package 4
Incentives, behavior and lifetime income redistribution
WP Leader
University of Essex
WP4 will extend analysis to consider:
- lifetime income inequality;
- behavioural and welfare effects of policy counterfactuals.
The former of these objectives will improve the comparability of statistics for exploring intergenerational inequality, motivated by the desire to leverage intergenerational solidarity as a solution to challenges posed by population aging.
The latter will permit consideration of the behavioural incentives associated with policy alternatives, including the desire to work later in life.
This last point is in contrast with the methodology set out for WP3, which proposes to apply exogenous behavioural assumptions, including employment rates throughout the working lifetime.
As with WP3, feasibility of the analysis is supported by drawing on existing modelling work (e.g., van de Ven, 2017a), and consideration of a limited set of countries for the WP. This WP will analyse data projected for Italy and the UK, which respectively have the highest and one of the lowest population shares aged 65 and over currently in Europe.
Tasks
- Preparing model inputs
- Revise microWELT to project data for consumption, labour income and investment income
- Revise microWELT to project data for disposable income and savings
- Accounting for pension incomes
- Baseline model projections from 2010 to 2050
- Projections for selected policy counterfactuals
- Open-source release of model
Research Output
- Cross-fertilization of microsimulation techniques. NTA routine implementable in EUROMOD