In this project, we intend to propose an efficient child benefit component for low- and middle-earning households in the frame of a reform of the family tax and benefit system (switch from marital splitting with lump-sum child allowances to individual taxation with family related deductions).
The objective is twofold. First, we describe in detail the proposed reform and measure its impact on both the income distribution and the household revenue. Second, we quantify the labour supply effects using the ZEW - micro-simulation model.
15.05.2007 - 15.10.2007
Dr. Denis Beninger
Prof. Dr. Reinhold Schnabel