1887

OECD Social, Employment and Migration Working Papers

This series is designed to make available to a wider readership selected labour market, social policy and migration studies prepared for use within the OECD. Authorship is usually collective, but principal writers are named. The papers are generally available only in their original language - English or French - with a summary in the other.

English, French

Indicators of Unemployment and Low-Wage Traps

Marginal Effective Tax Rates on Employment Incomes

  1. This paper presents results from an on-going joint European Commission / OECD project, aimed at monitoring the direct influence of tax and benefit instruments on household incomes. The project uses and extends OECD tax-benefit models to compute a range of work incentive indicators such as marginal effective tax rates on earned income. This paper provides a methodological background describing these extensions. It also discusses the usefulness of a range of indicators such as net replacement rates and marginal effective tax rates and to what extent they can be used to quantify possible work disincentives. The approaches are illustrated using detailed tax-benefit calculations for 2001 and comparing relevant indicators across 15 EU and 8 non-EU countries.
  2. The results presented in this paper permit the identification of family circumstances where (1) financial incentives to increase work are either small or missing altogether; or (2) resources provided by social transfers may be ...

English

JEL: H31: Public Economics / Fiscal Policies and Behavior of Economic Agents / 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 / Data Collection and Data Estimation Methodology; Computer Programs: General
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