Measuring work disincentives: Taxes, benefits and the transition into employment
Disincentives to employment participation arising from the tax-benefit system have been a major concern for welfare reforms. 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-worki...
| Main Authors: | , , |
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| Format: | Journal Article |
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The Centre for Labour Market Research, Curtin Business School, Curtin University of Technology
2011
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| Online Access: | http://hdl.handle.net/20.500.11937/31694 |
| _version_ | 1848753453480804352 |
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| author | Dockery, Alfred Michael Ong, Rachel Wood, G. |
| author_facet | Dockery, Alfred Michael Ong, Rachel Wood, G. |
| author_sort | Dockery, Alfred Michael |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Disincentives to employment participation arising from the tax-benefit system have been a major concern for welfare reforms. 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. |
| first_indexed | 2025-11-14T08:24:45Z |
| format | Journal Article |
| id | curtin-20.500.11937-31694 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:24:45Z |
| publishDate | 2011 |
| publisher | The Centre for Labour Market Research, Curtin Business School, Curtin University of Technology |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-316942017-03-08T13:31:53Z Measuring work disincentives: Taxes, benefits and the transition into employment Dockery, Alfred Michael Ong, Rachel Wood, G. labor supply income tax incentives in industry household surveys Disincentives to employment participation arising from the tax-benefit system have been a major concern for welfare reforms. 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. 2011 Journal Article http://hdl.handle.net/20.500.11937/31694 The Centre for Labour Market Research, Curtin Business School, Curtin University of Technology fulltext |
| spellingShingle | labor supply income tax incentives in industry household surveys Dockery, Alfred Michael Ong, Rachel Wood, G. Measuring work disincentives: Taxes, benefits and the transition into employment |
| title | Measuring work disincentives: Taxes, benefits and the transition into employment |
| title_full | Measuring work disincentives: Taxes, benefits and the transition into employment |
| title_fullStr | Measuring work disincentives: Taxes, benefits and the transition into employment |
| title_full_unstemmed | Measuring work disincentives: Taxes, benefits and the transition into employment |
| title_short | Measuring work disincentives: Taxes, benefits and the transition into employment |
| title_sort | measuring work disincentives: taxes, benefits and the transition into employment |
| topic | labor supply income tax incentives in industry household surveys |
| url | http://hdl.handle.net/20.500.11937/31694 |