Social security, taxation and inequality

Research in this area focuses on the effects of social security and taxation on the labour market and income distribution.

Social security and taxation crucially affect households’ disposable incomes and thereby wellbeing. Changes in social transfers or taxation directly affect income generation and income distribution. These may additionally have various behavioural impacts, inter alia on labour supply. The key premise is to do research that supports decision-making, applying both micro simulation and micro econometric methods.  

Various projects are ongoing in the research theme on the effects of policy changes in taxation and social transfers.

Current research topics include:

  • effects of unemployment benefits: how the eligibility conditions of earnings-related unemployment benefits and income security allowances affect the duration of unemployment and job quality following unemployment;
  • underuse of social security: we research guaranteed pensions, their underuse and whether the information provided on guarantee pensions affects different people differently;
  • income mobility, poverty and social inequality: a number of our researchers are involved in the multiannual Work, Inequality and Public Policy project funded by the Academy of Finland.

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