TAXIPP-LIFE microsimulation model

The TAXIPP-LIFE model provides projects the French population over the long-term (50 years projections), modelling individual trajectories, and changes to the tax and benefit system, as well as pension and elderly care

Motivation: The objective is to study redistribution of the French tax and benefit system in a life-cycle perspective. Traditionally analyses of the tax and benefit system assess its redistribution impact on an annual base. A dynamic model enables to evaluate the impact of pension reforms or elderly care provision.

Model: Using data of the French census data matched with administrative data, TAXIPP-LIFE creates a representative population, where each individual has its own family life course, professional career and health trajectory. The “Demographics” module includes fertility, marriages, divorces and mortality. The “Career” module describes the career path, employment status and wages at each period. A “Pension module” compute pension entitlements using the PENSIPP calculator, and determine retirement age using a retirement behavioural model. Matching the model with survey data on old-age disability led to the addition of the “Dependency” module, providing the prevalence of disability among the elderly. TAXIPP-LIFE includes simulated tax and benefits, using the microsimulation model TAXIPP.

The TAXIPP-LIFE model provides a simulation of demographics, careers throughout the life cycle, and, for the elderly, pensions and disability status. The model can analyse the long-term impacts of reforms, and their redistributive effects.

IPP researchers associated to this project: Benjamin Belrhomari, Mahdi Ben Jelloul, Antoine Bozio, Amélie Carrère, Chloé Lallemand, Lucie Le Rolland, Audrey Rain, Delphine Roy, Joyce Sultan Parraud, Maxime Tô, Léa Toulemon, and Julie Tréguier.

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