HHoT manual and households

What is HHoT?

The Hypothetical Household Tool (HHoT) is a EUROMOD plug-in for designing hypothetical households and generating data according to the chosen household characteristics. This hypothetical household data can then be used to estimate the effects of taxes and benefits on household disposable income.

HHoT generates specified hypothetical household input datasets in the standard EUROMOD input data format, which can be used with the EUROMOD software to perform tax and benefit microsimulations.

HHoT user manual

The HHoT user manual has been published as a EUROMOD technical note.

HHoT baseline households

This file includes predefined households that can be used to analyse basic characteristics of tax and benefit systems. The households are used for the HHoT baseline report: “The Use of Hypothetical Household Data with EUROMOD for Policy Learning - HHoT Baseline indicators” that will be published as a EUROMOD working paper in the first quarter of 2018.  

The specification of the hypothetical households is based on specific assumptions:

  • All adults are aged 40; children are aged 4 (pre-school) and 6 (in primary education) in households with two children and aged 4, 6, 16 (in upper secondary education) and 20 (in tertiary education) in households with 4 children.

  • Adults in employment are assumed to work full-time for 40 hours per week and to have 10 years of work experience. Similar characteristics are assumed for unemployed or inactive adults for their previous job.

  • The (previous) earnings of the first and the second adult in the household are assumed to be equal to 100% of the average monthly gross wage, except for households where other income levels are specified.

  • All households are assumed to live in rented accommodation with housing costs of 20% of the country-specific average monthly gross wage.

The following household types are provided:

  • SF_bud_con: single person households with earnings between 0% and 200%, used to draw budget constraint charts.

  • SF_metr: single person households with 25%, 50%, 75%, 100%, 125%, 150%, 175% and 200% earnings, used to analyse marginal effective tax rates at different income levels.

  • Employed, Unemployed, Inactive, Pensioner: single person households with different economic status, to analyse the income situation with different economic status.

  • Single, Lone Parent, Single Earner, Single Earner unemp, Dual Earner, Dual Earner 4 children: households with different household composition and different economic status, to analyse the benefit levels and tax/SIC rates of different household types.

** Download HHoT baseline households **