The aim of this project is to develop the Taxipp Microsimulation model in order to better estimate the short-term distribution of household income. Two major improvements have therefore been made to the model: refining the ageing process and converting incomes to monthly figures.
This also makes it possible to examine whether it is feasible to use short-term data to present initial estimates of trends in poverty and inequality, pending confirmation of these trends by precise survey data.
Institut des politiques publiques (IPP)’s Microsimulation model, Taxipp, is based on a matched database dating from 2018, which links households identified using FIDELI to tax households available in another database, FELIN (families as defined by the CAF are also reconstructed using various pieces of information within the households). Prior to this project, the ageing of the dataset was relatively homogeneous, and income and employment statuses were recorded on an annual basis. Wages were distributed evenly across the months, and individual employment statuses did not change during the year.
This project marked a significant step forward in the model’s development, introducing two major improvements. Firstly, the refinement of the ageing process, through the development of an overview of the available methods and data sources that enable a credible simulation of the demographic, economic and social changes in the population after 2018. Secondly, the conversion of incomes to monthly figures, where relevant, in order to produce a model with sub-annual granularity, capable of estimating households’ standard of living on a monthly or quarterly basis.
This work received funding from the Economic Analysis Council (CAE).
