With the transition from the German national emissions trading system to the European Emissions Trading System (EU ETS2) from 2027, final consumer prices for fossil motor and heating fuels are likely to rise significantly. This increase will affect low-income households more noticeably, as they spend a larger share of their income on energy than high-income households. Existing relief measures, such ...
We quantify the unintended effects of a low-wage payroll tax reduction using an equilibrium search model featuring bargaining, worker and firm productivity heterogeneity, labor taxes, and a minimum wage. The decentralized economy is inefficient due to search externalities and labor market policies. We estimate the model using French data and find that a significant reduction in low-wage payroll taxes ...
This paper analyzes the distribution and composition of pre-tax national income in Germany since 1992, combining personal income tax returns, household survey data, and national accounts. Inequality rose from the 1990s to the late 2000s due to falling labor incomes among the bottom 50% and rising incomes in the top 10%. This trend reversed after 2007 as labor incomes across the bottom 90% increased. ...
On average, mothers and fathers in Germany divide paid work and care work very unequally. Mothers often only work part time, which results in further gender inequalities in the labor market. A current analysis of data from the German Family Demography Panel Study (FReDA) shows that the population’s attitudes toward the ideal division of work between couples with children under 12 are considerably more ...
This study examines how inheritance and gift tax systems in combination with gendered parental transfer behavior strengthen gender wealth inequalities. Gender differences in transfers can be reproduced if men benefit differently than women from tax exemptions. This might happen when men and women receive different types of assets where only some are tax exempted. To investigate gendered parental...
This project serves to further develop the open source software GETTSIM. GETTSIM is a simulation model written in the programming language Python, which can depict the German tax and transfer system. The software offers a multitude of applications in research and teaching. It is developed in cooperation with the IZA (Institute of Labor Economics) as well as other German research institutes and...
Policymakers widely use tax-based incentives to spur investment and stimulate economic growth. Tax policy has been at the center of emergency measures during the Covid-19 pandemic, and it is now as countries face a significant deterioration in public finances. Yet, empirical tax research is still in disagreement on how taxes affect business investment. We investigate the effect of local business...