Indicators of unemployment and low-wage traps (marginal effective tax rates on labour)

Giuseppe Carone, Aino Salomäki, Herwig Immervoll and Dominique Paturot

No 197, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: This 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 “making work pay†, 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..

Keywords: taxation; fiscal policy; household income; marginal effective tax rates; METR; unemployment trap; inactivity trap; low-wage trap; employment; Carone; Salomäki; Immervoll; Paturot (search for similar items in EconPapers)
Pages: 102 pages
Date: 2003-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0197

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