The purpose of this study is to pursue an assessment of various possible policy choices while providing a methodology for assessing intergenerational fairness. For the analysis we will use the tax-benefit microsimulation model EUROMOD. In order to assess the underlying effects leading to a potential shift in the income distribution between generations in the course of the economic crisis, the effects of discretionary policy changes, automatic stabilisers (such as progressive tax systems, unemployment or social assistance benefits) and socio-economic and demographic characteristics of the population will have to be disentangled. In terms of policy recommendations, we will compare the simulated disposable income of an individual/household before and after the hypothetical reforms, keeping all other effects constant. The selection of policies will not focus a priori on younger age groups. Instead, we will first check who benefitted/ lost in the aftermath of the crisis in the different Member States and then choose relevant policies.
FGB – Fondazione Giacomo Brodolini (Italy), LSE – London School of Economics (United Kingdom)