Reducing inequality through policy and taxes
We work to reduce inequality in Luxembourg and across Europe through taxation, social welfare, and labor market policies. Our goal is to design systems that minimize economic disparities and promote social cohesion.
Evidence-Based Research to Improve Redistribution
To ensure effective policies, we conduct research on income distribution, taxation efficiency, and welfare impact. By analysing tax records, household income, and social benefits, we identify gaps in social protection, tax inefficiencies, and unequal access to benefits. This helps us refine redistribution policies to better serve those in need.
We also run policy experiments and case studies on interventions like minimum income policies, progressive tax reforms, and housing affordability measures. These real-world tests provide insights that enhance social protection and economic redistribution.
Using Microsimulation to Design Fair and Effective Policies
To further refine our approach, we use static, dynamic, and behavioral micro-simulation models. Static models assess immediate policy effects on income distribution and poverty, while dynamic models forecast long-term impacts, considering employment, wages, and demographic shifts. Behavioral models predict how individuals respond to policy changes, helping design policies that encourage labor participation and financial independence.
By integrating these models with large-scale data, we develop evidence-based policy recommendations that address both short- and long-term challenges. Our approach ensures fairer resource distribution, fostering a more inclusive and stable society in Luxembourg and the EU.