Front Matter Page
IMF Country Report No. 20/6
FINLAND
SELECTED ISSUES
This paper on Finland was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on December 16, 2019.
January 2020
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Front Matter Page
FINLAND
SELECTED ISSUES
December 16, 2019
Approved By
European Department
Prepared by Philippe Wingender
Contents
PROMOTING LABOR SUPPLY THROUGH TAX AND BENEFIT REFORM
A. Introduction
B. Main Features of the Finnish Welfare Model
C. Methodology and Data Sources
D. Reform Scenarios
E. Economic Effects of Reform Scenarios
F. Conclusions
FIGURES
1. Income Levels and Income Inequality
2. Guaranteed Minimum Income
3. Tax Rates Comparisons
4. Potential Income Distributions, 2018
5. Disposable Income Decomposition
6. Marginal Effective Tax Rate Composition
7. Participation Tax Rate Decomposition
8. Estimated Social Marginal Welfare Weights
9. Social Marginal Welfare Weights for Reform
10. Participation Tax Rates
11. Marginal Effective Tax Rates
12. Labor Supply Responses, Combination Reform
13. Net Income Changes from Reform
14. Marginal Effective Tax Rates, Robustness
15. Economic Effects from Reform
TABLES
1. Tax and Benefit Parameters: Current and Proposed Reforms
2. Economic Impact of the Proposed Reforms