The Role of Tax-Benefit Systems in Shaping Economic Insecurity in the European Union

• OLGA CANTÓ ^[1] ; CARMELO GARCÍA-PÉREZ ^[1] ; MARINA ROMAGUERA-DE-LA-CRUZ ^[2]
  1. [1] Universidad de Alcalá

     Universidad de Alcalá

     Alcalá de Henares, España

     
  2. [2] Universidad Nacional de Educación a Distancia

     Universidad Nacional de Educación a Distancia

     Madrid, España

     
• Localización: Hacienda Pública Española / Review of Public Economics, ISSN 0210-1173, Nº 247, 2023 (Ejemplar dedicado a: Special issue on economic insecurity, vulnerability and inequality: The role of public policies), págs. 7-36
• Idioma: inglés
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• Resumen

  • This paper aims to understand if differences in European countries’ tax-benefit systems impact on individual levels of economic insecurity beyond their socioeconomic and demographic characteristics, with an additional focus on households with children. We consider 29 European countries and use multilevel modelling techniques to study the simultaneous role of micro and macro determinants on a multidimensional index of economic insecurity. Our results show that larger welfare systems and generous general social risk policies for unemployment, bad health and social exclusion are correlated with lower insecurity levels, also for households with children who may receive other transfers specifically targeted to them.