Measuring Worker Disincentives: Taxes, Benefits and the Transition into Employment
AbstractDisincentives to employment participation arising from the tax-benefit system have been a major concern for welfare reform. Data from the Household, Income and Labour Dynamics in Australia Survey are used to generate and test the robustness of three commonly used disincentive measures for non-working Australians: effective marginal tax rates, replacement rates and participation tax rates. The results of transition models suggest financial disincentives as measured in the current period have a large effect on employment outcomes one year later, and the replacement rate is the preferred measure for modelling disincentives facing the unemployed. While attracting most attention in the welfare-to-work debate, effective marginal tax rates are found to be an inappropriate measure of work disincentives facing the non-employed.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Bankwest Curtin Economics Centre (BCEC), Curtin Business School in its journal Australian Journal of Labour Economics (AJLE).
Volume (Year): 14 (2011)
Issue (Month): 3 ()
Contact details of provider:
Postal: GPO Box U1987, Perth WA 6845
Web page: http://business.curtin.edu.au/research/publications/journals/ajle/
More information through EDIRC
Welfare and Poverty Government Programs Provision and Effects of Welfare Programs Unemployment Models; Duration; Incidence; and Job Search Time Allocation and Labor Supply;
Find related papers by JEL classification:
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Rachel Ong & Gavin Wood & Melek Cigdem, 2013. "Work incentives and decisions to remain in paid work in Australia," Bankwest Curtin Economics Centre Working Paper series WP1312, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alan Duncan).
If references are entirely missing, you can add them using this form.