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La prime au travail du Québec : Un véritable outil d’incitation au travail ou une simple façon de baisser l’impôt?

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  • Luc Godbout

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  • Matthieu Arseneau
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    Abstract

    This paper investigates the work incentives aspect of the new tax credit called “Prime au travail” introduced by the Quebec government in January 2005. The problem of work incentives is discussed and a review of the literature pertaining to the American, English and French experiences in this matter is presented. The authors observe the impact of the new tax credit on work incentives on several types of households and compare its parameters with those of foreign programs. The results indicate that the important budget increase linked to the replacement of the “APPORT” program by the “prime au travail” program does not necessarily imply that the “welfare to work” transition is encouraged to a greater degree. Moreover, foreign experiences show that our expectations about the impact of the “prime au travail” on work incentives might have to be revised downwards Cette étude porte sur l’évaluation du caractère incitatif de la nouvelle politique d’incitation au travail, appelée « prime au travail », mise en place par le gouvernement du Québec depuis le 1er janvier 2005. L’étude présente la problématique de l’incitation au travail et dresse une revue de la littérature concernant les expériences américaine, anglaise et française en cette matière. Les auteurs évaluent l’impact direct de la prime au travail sur différents types de ménages québécois et mettent en perspective ses paramètres comparativement aux expériences étrangères. Ils soutiennent que la hausse considérable des budgets consacrés à inciter les gens à travailler induite par le passage du programme APPORT vers la prime au travail n’implique pas nécessairement que le passage de l’aide sociale au marché du travail soit favorisé. De plus, à la lumière des expériences étrangères, ils concluent que les attentes à l’égard des impacts de la prime au travail en matière d’incitation doivent être révisées à la baisse.

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    Bibliographic Info

    Paper provided by CIRANO in its series CIRANO Working Papers with number 2005s-01.

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    Date of creation: 01 Feb 2005
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    Handle: RePEc:cir:cirwor:2005s-01

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    Related research

    Keywords: work incentives; prime au travail; low incomes tax credit; Quebec; tax cut; incitation au travail; prime au travail; crédit d’impôt pour bas salariés; Québec; baisse d’impôts;

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    References

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    1. Hilary Hoynes & Richard Blundell, 2001. "Has "In-Work" Benefit Reform Helped the Labour Market?," NBER Working Papers 8546, National Bureau of Economic Research, Inc.
    2. Nada Eissa & Hilary Williamson Hoynes, 1998. "The Earned Income Tax Credit and the Labor Supply of Married Couples," NBER Working Papers 6856, National Bureau of Economic Research, Inc.
    3. Reamonn Lydon & Ian Walker, 2005. "Welfare to work, wages and wage growth," Fiscal Studies, Institute for Fiscal Studies, vol. 26(3), pages 335-370, September.
    4. Eissa, Nada & Liebman, Jeffrey B, 1996. "Labor Supply Response to the Earned Income Tax Credit," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 605-37, May.
    5. Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
    6. Hélène Périvier, 2003. "Les mesures fiscales d'incitation au travail des personnes non qualifiées," Revue de l'OFCE, Presses de Sciences-Po, vol. 87(4), pages 281-336.
    7. Blundell, Richard, 2000. "Work Incentives and 'In-Work' Benefit Reforms: A Review," Oxford Review of Economic Policy, Oxford University Press, vol. 16(1), pages 27-44, Spring.
    8. R. Haveman & B. Wolfe, . "Welfare to Work in the U.S.: A Model for Other Nations?," Institute for Research on Poverty Discussion Papers 1159-98, University of Wisconsin Institute for Research on Poverty.
    9. François Legendre & Jean-Paul Lorgnet & Ronan Mahieu & Florence Thibault, 2004. "La Prime pour l'emploi constitue-t-elle un instrument de soutien aux bas revenus ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 88(1), pages 43-58.
    10. Browning, Edgar K., 1995. "Effects of the Earned Income Tax Credit on Income and Welfare," National Tax Journal, National Tax Association, vol. 48(1), pages 23-43, March.
    11. V. Joseph Hotz & Charles H. Mullin & John Karl Scholz, 2001. "The Earned Income Tax Credit and Labor Market Participation of Families on Welfare," JCPR Working Papers 214, Northwestern University/University of Chicago Joint Center for Poverty Research.
    12. J. K. Scholz, . "The earned income tax credit: Participation, compliance, and antipoverty effectiveness," Institute for Research on Poverty Discussion Papers 1020-93, University of Wisconsin Institute for Research on Poverty.
    13. Fortin, Bernard, 1998. "Dépendance à l'égard de l'aide sociale et réforme de la sécurité du revenu," Cahiers de recherche 9803, Université Laval - Département d'économique.
    14. Pierre Cahuc, 2002. "A quoi sert la prime pour l'emploi ?," Revue Française d'Économie, Programme National Persée, vol. 16(3), pages 3-61.
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