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Economic downturn and stress testing European welfare systems

Number: 28
Year: 2010
Author(s): Francesco Figari, Andrea Salvatori, Holly Sutherland,
Keywords: unemployment,economic crisis,European Union,household income,microsimulation
As unemployment rises across the European Union (EU) it is important to understand the extent to which the incomes of the new unemployed are protected by tax-benefit systems and to assess the cost pressures on the governments. This paper uses the EU tax-benefit model EUROMOD to explore these issues, comparing effects in five countries. It provides evidence on the differing degrees of resilience of the household incomes of the newly unemployed due to the variations in the protection offered by the tax-benefit systems, according to whether unemployment benefit is payable, the household situation of the unemployed person, and across countries.

Francesco Figari

University of Essex, ISER and Universita Bocconi, Dondena Centre for Research on Social Dynamics


Andrea Salvatori

University of Essex, ISER


Holly Sutherland

University of Essex, ISER



Keywords: unemployment, economic crisis, European Union, household income, microsimulation

JEL codes: C81, H55, I3


Download: The paper may be downloaded here.