Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/104644 
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers No. 8553
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper describes IZAΨMOD, the policy microsimulation model of the Institute for the Study of Labor (IZA). The model uses household microdata from the German Socio-Economic Panel Study and firm data from the German linked employer-employee dataset LIAB. IZAΨMOD consists of three components: First, a static module simulates the effects of a tax-benefit reform on the budget of the individual household. This includes taxes on income and consumption, social security contributions, public transfers. Secondly, behavioral labor supply responses are estimated. The third component distinguishes our model from most other microsimulation tools. A demand module takes into account possible restrictions of labor demand and identifies the partial equilibrium of the labor market after the supply reactions.
Subjects: 
microsimulation
tax and benefit systems
labor supply
labor demand
Germany
JEL: 
D58
H20
J22
J23
Document Type: 
Working Paper

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