Presentation: Gendered fiscal incidence analysis and tax-benefit microsimulation models: Overview, opportunities, and caveats

On Tuesday 10th September 2024, TaxDev researcher Laura Abramovsky, and Pia Rattenhuber from UNU-WIDER, jointly delivered a presentation on “Gendered fiscal incidence analysis and tax-benefit microsimulation models: Overview, opportunities, and caveats” to the Community of Practice on Gender and Tax (CoPGT). The CoPGT aims to convene key stakeholders in policy and research to collaboratively advance relevant research and best practices for more effective tax policymaking that works better for promoting gender equality in the context of wider fiscal systems.

Tax-benefit microsimulation models can calculate the distributional impact of tax policies and public spending on individuals and households with different characteristics, including income, gender and age. They can also be used to synthesise how tax and benefits affect (formal) work incentives through their impact on take-home pay. As such, they can be valuable tools when trying to figure out how these policies affect men and women differently and whether a policy had its intended effect. When thinking about fiscal policy and gender, it is key to consider the tax and spending system as a whole. Furthermore, it is important to understand what the drivers of these gaps are, have clear policy objectives and identify the best solutions to achieve these. This often means looking beyond tax policies.