Authors

Andreas Peichl

  • Current position:
    Head of ZEW’s Research Group “International Distribution and Redistribution” and Professor of Quantitative Public Economics at the University of Mannheim, Germany
  • Research interest:
    Public economics, labor economics, and welfare economics
  • Website:
    http://bit.ly/Peichl_IZApage
  • Affiliations:
    ZEW, University of Mannheim, and IZA, Germany
  • Past positions:
    Senior Research Associate, IZA Bonn, 2008–2013
  • Qualifications:
    PhD Economics, University of Cologne, 2008
  • Personal statement about IZA World of Labor:
    I’m excited to be a part of this innovative project. I hope that policymakers and academics alike will find World of Labor a useful way to quickly learn the latest state of research on a wide range of issues in labor policy
  • Selected publications:
    • “Automatic stabilizers and economic crisis: US vs. Europe.” Journal of Public Economics 96:3–4 (2012): 279–294 (with M. Dolls and C. Fuest).
    • “Accounting for labor demand effects in structural labor supply models.” Labour Economics 19:1 (2012): 129–138 (with S. Siegloch).
    • Comparing Labor Supply Elasticities in Europe and the US: New Results. IZA Discussion Paper No. 6735 [forthcoming in Journal of Human Resources] (with O. Bargain and K. Orsini).
    • “Fiscal union in Europe? Redistributive and stabilising effects of a European tax-benefit system and fiscal equalisation mechanism.” Economic Policy (Forthcoming) (with O. Bargain, M. Dolls, C. Fuest, D. Neumann, N. Pestel, and S. Siegloch).
    • “Fair and efficient taxation under partial control” [forthcoming in Economic Journal] (with E. Ooghe)
  • Articles

Flat-rate tax systems and their effect on labor markets

Despite their theoretical benefits, flat taxes have been tried only in a few formerly socialist countries

October 2014

10.15185/izawol.61 61

by Andreas Peichl Peichl, A

The potential economic outcomes resulting from a flat rate of income tax have been the subject of an ongoing academic and political debate. Many observers have suggested that the introduction of a flat tax would be beneficial for a country’s economy, having a positive influence on the labor market and the gross domestic product by enhancing incentives to work, save, invest, and take risks. A flat tax also significantly simplifies income taxation which increases tax compliance and reduces tax planning, avoidance, and evasion. However, despite flat taxes being on the political agenda in many countries, in practice their implementation has mostly been restricted to the transition economy countries of Eastern Europe. There is no one single flat tax system in place in these countries though; one rate does not fit all.