Variable: Average tax wedge on labour (Percentage of total labour compensation)
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OECD, Taxing Wages Database.
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Measured as the difference between total labour compensation paid by the employer and the net take-home pay of employees, as a ratio of total labour compensation. It therefore includes both employer and employee social security contributions.
Variable: Average tax wedge on labour (Percentage of total labour compensation)Data source(s) used
OECD, Taxing Wages Database.
Key statistical concept
Measured as the difference between total labour compensation paid by the employer and the net take-home pay of employees, as a ratio of total labour compensation. It therefore includes both employer and employee social security contributions.