ILO and EU Support EUROMOD Tax-Benefit Microsimulation Training in China

In a landmark step toward fostering evidence-based policymaking in social protection, the International Labour Organization (ILO), with the support of the European Union (EU), successfully conducted the first-ever technical training on the EUROMOD tax-benefit microsimulation model in China. The training, held in Beijing from April 28 to 30, 2025, marked a pivotal milestone in the EU-funded project titled “Improving China’s Institutional Capacity towards Universal Social Protection (Phase 2).”

The training brought together 12 high-level participants, including government officials from the Ministry of Human Resources and Social Security (MOHRSS), experts from the China Enterprise Confederation (CEC), and scholars from renowned universities and research institutions across the country.

What Is EUROMOD and Why It Matters

EUROMOD is a powerful tax-benefit microsimulation model developed by the European Commission’s Joint Research Centre (JRC). Originally designed for the European Union, EUROMOD enables researchers and policymakers to assess the impact of taxes and social benefits on household incomes and work incentives in a harmonized way. By simulating tax and benefit policies across countries, it supports comparative analysis and policy reform evaluation grounded in empirical data.

The model has proven instrumental in shaping social and fiscal policies within the EU, offering insights in areas such as income redistribution, poverty reduction, and labor market behavior. With its robust analytical capabilities, EUROMOD is now being introduced as a model for adaptation beyond Europe, as demonstrated by this inaugural training in China.

A Collaborative Training Approach: Learning by Doing

Led by two distinguished trainers from the Fiscal Policy Analysis Unit at the JRC—Ms. Chrysa Leventi and Mr. Fidel Picos—the three-day training focused on equipping participants with comprehensive knowledge of EUROMOD’s architecture and application.

The training was structured to include:

• Theoretical sessions explaining microsimulation principles and EUROMOD’s technical structure.

• Live demonstrations of the model to illustrate its practical uses.

• Hands-on exercises where participants conducted simulations and interacted with the model’s core functions.

This blended approach ensured that participants not only understood the conceptual underpinnings of microsimulation modeling but also developed the practical skills necessary to apply EUROMOD independently.

A Platform for Policy Innovation

The training also served as an opportunity to explore the feasibility of developing a China-specific tax-benefit microsimulation model inspired by EUROMOD. Such a tool could dramatically enhance the capacity of Chinese policymakers to design, evaluate, and reform social protection measures based on robust data and simulation techniques.

“This very first training on EUROMOD in China will hopefully inspire participants to utilize microsimulation models to inform sound policy decisions,” said Ruben Vicente Andres, Social Protection Project Manager at the ILO Country Office for China and Mongolia. “We are optimistic that the knowledge and skills acquired will contribute to advancing evidence-based reforms in China’s social protection system.”

Reinforcing EU-China Cooperation on Social Protection

The training was not just a technical exercise, but also a testament to the deepening partnership between China, the EU, and the ILO in advancing social welfare. Alessandra Lepore, International Officer from the Delegation of the European Union to China, reiterated the EU’s continued commitment to strengthening social policy collaboration with China.

“The European Union remains dedicated to working closely with China and the ILO to address mutual challenges in the field of social policy,” Lepore affirmed. “We see this training as an important step in sharing EU expertise and encouraging the adoption of evidence-based tools for policymaking.”

Looking Forward: Sustaining the Momentum

With the positive feedback from participants and the success of the training, stakeholders anticipate further capacity-building initiatives and the potential localization of the EUROMOD model. The ILO and EU have expressed their ongoing support for China’s institutional strengthening in social protection, emphasizing the critical role of data and analysis in shaping sustainable and inclusive social policies.

As China continues its journey toward universal social protection, tools like EUROMOD may prove vital in ensuring policies are responsive, equitable, and backed by solid evidence.