Indicators of unemployment and low-wage traps (marginal effective tax rates on labour)
AbstractThis paper presents results of an on-going joint European Commission / OECD project, aimed at monitoring the direct influence of tax and benefit instruments on household incomes. Indicators of financial work incentives are needed for identifying any undesired influences of taxes and social transfers on people's work decisions. At the same time, a central part of recent tax and benefit reform strategies has been to reduce reliance on welfare by â€œmaking work payâ€, that is, to make work an economically attractive option relative to welfare. It is therefore desirable to monitor the effects of such policies as well as the potential for further reform..
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Bibliographic InfoPaper provided by Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 197.
Length: 102 pages
Date of creation: Dec 2003
Date of revision:
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taxation; fiscal policy; household income; marginal effective tax rates; METR; unemployment trap; inactivity trap; low-wage trap; employment; Carone; Salom�ki; Immervoll; Paturot;
Other versions of this item:
- Giuseppe Carone & Aino Salomaki & Herwig Immervoll & Dominique Paturot, 2004. "Indicators of unemployment and low-wage traps (Marginal effective tax rates on labour)," Labor and Demography 0409007, EconWPA.
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
- C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
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