Dirk Neumann is a Junior Economist/Social Policy Analyst at the OECD in Paris and Research Associate at the Centre for European Economic Research (ZEW) in Mannheim. From 2013 until 2016 he was a postdoctoral researcher at the Center for Operations Research and Econometrics (CORE) at the Université catholique de Louvain. He received his PhD in economics from the University of Cologne in 2013.

His research interests are in the field of public economics. Particularly, he is concerned with the analysis of tax-transfer systems with respect to their redistributive, stabilizing and labor supply effects.

Dirk joined IZA as a Research Affiliate in September 2009. From October 2011 until February 2013, he was a Resident Research Affiliate. Dirk became an IZA Research Fellow in July 2015.



IZA Discussion Paper No. 10181

In a model in which agents differ in wages and preferences over labor time-consumption bundles, we study labor income tax schemes that alleviate poverty. To avoid conflict with individual well-being, we require redistribution to take place between agents on both sides of the poverty line provided they have the same...

IZA Discussion Paper No. 8598
revised version forthcoming in: International Tax and Public Finance

We analyze different alternatives how a common unemployment insurance system for the euro area (EA) could be designed and assess their effectiveness to act as an insurance device in the presence of asymmetric macroeconomic shocks. Running counterfactual simulations based on micro data for the period 2000-13, we highlight and quantify...

IZA Discussion Paper No. 8589
revised version published in: M. Adler, M. Fleurbaey (eds.), Oxford Handbook of Well-Being and Public Policy, OUP, 2016, 553-587

We discuss and compare five measures of individual well-being, namely income, an objective composite well-being index, a measure of subjective well-being, equivalent income, and a well-being measure based on the von Neumann-Morgenstern utilities of the individuals. After examining the information requirements of these measures, we illustrate their implementation using data...

IZA Discussion Paper No. 7215
revised version published in: International Tax and Public Finance, 2014, 21(5), 845-873

We analyze to which extent social inequality aversion differs across nations when control- ling for actual country differences in labor supply responses. Towards this aim, we estimate labor supply elasticities at both extensive and intensive margins for 17 EU countries and the US. Using the same data, inequality aversion is...

IZA Discussion Paper No. 7190
revised version published as 'Tax Policy and Income Inequality in the United States, 1979–2007' in: Economic Inquiry, 2015, 53 (2), 1061-1085

We assess the effects of U.S. tax policy reforms on inequality by applying a new decomposition method that allows us to disentangle the direct policy effect from the effect of changing market incomes. Over the whole period 1979-2007 the cumulative tax policy effect aggravated income inequality by increasing the income...

IZA Discussion Paper No. 6999

This paper offers a first empirical investigation of how labor taxation (income and payroll taxes) affects individuals' well-being. For identification, we exploit exogenous variation in tax rules over time and across demographic groups using 26 years of German panel data. We find that the tax effect on subjective well-being is...

IZA Discussion Paper No. 6585
revised version published as 'Fiscal Union in Europe? Redistributive and Stabilizing Effects of a European Tax-Benefit System and Fiscal Equalization Mechanism' in: Economic Policy, 2013, 28 (75), 375-422

The current debt crisis has given rise to a debate about deeper fiscal integration in Europe. The view is widespread that moving towards a 'fiscal union' would have a stabilising effect in the event of macroeconomic shocks. In this paper we study the economic effects of introducing two elements of...

IZA Discussion Paper No. 6102
revised version published in: Social Choice and Welfare, 2013, 41 (4), 789-817

Following the report of the Stiglitz Commission, measuring and comparing well-being across countries has gained renewed interest. Yet, analyses that go beyond income and incorporate non-market dimensions of welfare most often rely on the assumption of identical preferences to avoid the difficulties related to interpersonal comparisons. In this paper, we...

IZA Discussion Paper No. 5910
substantially revised version available as IZA DP 7190

We assess the effects of U.S. tax policy reforms on inequality by applying a new decomposition method that allows us to disentangle mechanical effects due to changes in pre-tax incomes from direct effects of policy reforms. While tax reforms implemented under Democrat administrations, in particular the EITC reforms in the...

IZA Discussion Paper No. 5440
revised version split into 2 parts which are published in International Tax and Public Finance (also available as IZA DP 7215) and Annals of Economics and Statistics

Whether observed differences in redistributive policies across countries are the result of differences in social preferences or efficiency constraints is an important question that paves the debate about the optimality of welfare regimes. To shed new light on this question, we estimate labor supply elasticities on microdata and adopt an...