Database Specific
Database Specific Abstract AbstractThis indicator measures the fraction of any additional earnings that is lost to either higher taxes or lower benefits when an employed person increases marginally their working hours.
Data Characteristics Data Characteristics Date last updated Date last updatedThe 1st annual release of the OECD tax-benefit indicators is in February. It includes new indicators for year T-1 for the majority of OECD and EU countries, plus updates for previous years. The 2nd release is in May and includes updates for all available years plus new indicators for year T-1 for the countries that could not be included in the first release.The 3rd and final annual release is in November. It includes updates for all previous years and new indicators for year T-1 for the countries that could not be included in the second release.
Other data characteristics Other data characteristics1. Incomes are calculated at the family level.
2. The numerator is the change in tax liabilities and benefit entitlements when one working family member increase their working hours. The denominator is the associated increase in gross earnings.
3. For couples, if the partner of the person who is increasing the hours of work is out of work, it is assumed that s/he does not receive any contributory benefits (e.g. because they have expired) but they do meet any behavioural requirements needed for eligibility to other types of social benefits.
4. Calculations for families with children assume two children aged 4 and 6. Family benefits and in-work benefits are included in the calculations subject to relevant income and eligibility conditions. Neither childcare benefits, i.e. benefits related to the use of centre-based childcare, nor costs for centre-based childcare are considered in these calculations. Adults are aged 40 and are assumed to have full work capacity.
5. If housing benefits are included in the calculations, these are calculated assuming a household renting in the private market paying rent equal to 20% of the average wage. Rent levels are the same for all family types.
6. Where benefit rules are not determined on a national level but vary by region or municipality, results refer to a “typical” case (e.g. Michigan in the United States, the capital in some other countries). A full description of the policies included in the calculations for each country is available here.
7. For a detailed description of the assumptions underlying the OECD Tax-Benefit model and the related policy indicators, please see the methodology document.
8. For more information, visit the project webpage or contact the OECD tax-benefit team.
Reference period Reference periodIndicators calculated before 2018 are based on the policy rules and parameters that were in place on the 1st of July of the selected year. Indicators calculated from 2018 onwards are based on the policy rules and parameters that were in place on the 1st of January of the selected year (7th of April for the United Kingdom and 1st of April for New Zeland)
This indicator measures the fraction of any additional earnings that is lost to either higher taxes or lower benefits when an employed person increases marginally their working hours.
Indicators calculated before 2018 are based on the policy rules and parameters that were in place on the 1st of July of the selected year. Indicators calculated from 2018 onwards are based on the policy rules and parameters that were in place on the 1st of January of the selected year (7th of April for the United Kingdom and 1st of April for New Zeland)
The 1st annual release of the OECD tax-benefit indicators is in February. It includes new indicators for year T-1 for the majority of OECD and EU countries, plus updates for previous years. The 2nd release is in May and includes updates for all available years plus new indicators for year T-1 for the countries that could not be included in the first release.The 3rd and final annual release is in November. It includes updates for all previous years and new indicators for year T-1 for the countries that could not be included in the second release.
1. Incomes are calculated at the family level.
2. The numerator is the change in tax liabilities and benefit entitlements when one working family member increase their working hours. The denominator is the associated increase in gross earnings.
3. For couples, if the partner of the person who is increasing the hours of work is out of work, it is assumed that s/he does not receive any contributory benefits (e.g. because they have expired) but they do meet any behavioural requirements needed for eligibility to other types of social benefits.
4. Calculations for families with children assume two children aged 4 and 6. Family benefits and in-work benefits are included in the calculations subject to relevant income and eligibility conditions. Neither childcare benefits, i.e. benefits related to the use of centre-based childcare, nor costs for centre-based childcare are considered in these calculations. Adults are aged 40 and are assumed to have full work capacity.
5. If housing benefits are included in the calculations, these are calculated assuming a household renting in the private market paying rent equal to 20% of the average wage. Rent levels are the same for all family types.
6. Where benefit rules are not determined on a national level but vary by region or municipality, results refer to a “typical” case (e.g. Michigan in the United States, the capital in some other countries). A full description of the policies included in the calculations for each country is available here.
7. For a detailed description of the assumptions underlying the OECD Tax-Benefit model and the related policy indicators, please see the methodology document.
8. For more information, visit the project webpage or contact the OECD tax-benefit team.