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. Additionally these changes may have various behavioural impacts on, among other things, labour supply. The key premise is to do research that supports decision-making.
We have various projects ongoing 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
- social benefit thresholds and labour supply
- mechanisms of shadow economy
- 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.
- VAT cuts do not increase consumer purchasing power
2.9.2020 Press release
- Results of the basic income experiment: small employment effects, better perceived economic security and mental wellbeing
- Lower corporate tax rate did not increase investments by small firms
6.3.2020 Press release
- Academic prestige abroad, trusted at home – international evaluation of the VATT Institute for Economic Research completed
14.2.2020 Press release
- Shortening the period of extended unemployment benefits increases employment among older workers
29.1.2020 Press release