Gender disparities in the labour market regarding employment rates and wages are widespread in EU countries.  Historically, these gender gaps have been narrowing, significantly influencing the macroeconomy. In this paper, we employ a dynamic general equilibrium model populated by overlapping generations of men and women to evaluate the economic consequences of these trends continuing over the coming decades. We perform a cross-country analysis focused on the fiscal sustainability of public pension systems. Our findings suggest that a continued reduction in gender gaps in the labour market could significantly mitigate the fiscal impact of population ageing. Quantitatively, the effects are comparable to reforms that increase the retirement age.

In the present paper we compare standard wage processes used in the quantitative literature on the optimal tax progressivity and a process with heterogeneous life-cycle profiles (HIP hereafter) that we propose against the data. We find that the former fail to capture several features of the earnings dynamics at the very top of the distribution while our proposed model improves along some of these dimensions. 

Business income is systematically underreported and accounts for a sizeable share of the US tax gap. In this paper, I examine the importance of tax evasion in the entrepreneurial sector for the effects of tax reforms. In particular, I analyze the long-run effects of switching from a progressive income tax to a proportional one. The quantitative framework used is a model with heterogeneous agents and incomplete markets that features an entrepreneurial choice and a tax evasion decision. Explicitly considering tax evasion in this reform implies: i) significantly lower increases in capital accumulation and output, ii) a less negative impact on wealth concentration.