Historical Gross Replacement Rates
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Click to expand Abstract
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The Historical Gross Replacement Rate (Historical-GRR) indicator was originally developed as part of the OECD Jobs Study (1994). This indicator was reliant on access to the Average Production Worker (APW) wage measure, which have not been collected by the OECD since 1999. Gross Replacement Rate (GRR) values calculated after 1999 rely on a slightly different wage measure, the Average Wage (AW), and are therefore not fully comparable with the historical data. Historical GRR indicator measures the average amount of unemployment benefit received after selected spells of unemployment in proportion to the employment income earned before losing the job. All values are calculated before taxes and social security contribution payments. Calculations exclude family benefits, social assitance, housing benefits as well as in-work benefits. Because of these exclusions, the Net Replacement Rates in unemployment may provide a more complete measure of income maintenance than the GRR, especially when considering longer periods of unemployment and/or families with children.

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Click to expand Date last updated
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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 that could not be updated in February.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 updated in May.

Click to expand Other data characteristics
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1. Calculations refer to a jobseeker aged 40 with an uninterrupted employment record since age of 19 until the job loss.
2. If benefit receipt is subject to activity tests or other behavioural requirements, e.g. active job-search and being available for work, it is assumed that these requirements are met.
3. Calculations are made before considering income tax and social security contribution payments. Social assistance, housing and family benefits are not included. Entitlements refer to a selected month of unemployment and are expressed in annualised terms (i.e. monthly values multiplied by 12), even if the maximum benefit duration is shorter than 12 months.
4. For married couples, if the second adult member is out of work, it is assumed that they are not claiming unemployment benefits, e.g. because they have expired.
5. Calculations for families with children assume that children are 4 and 6 years old. Neither childcare benefits nor childcare costs are considered. Adults are both aged 40 and are assumed to have full work capacity.
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.
10. For more information, visit the project webpage or contact the OECD tax-benefit team.

Click to expand Reference period
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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)

Historical Gross Replacement RatesAbstract

The Historical Gross Replacement Rate (Historical-GRR) indicator was originally developed as part of the OECD Jobs Study (1994). This indicator was reliant on access to the Average Production Worker (APW) wage measure, which have not been collected by the OECD since 1999. Gross Replacement Rate (GRR) values calculated after 1999 rely on a slightly different wage measure, the Average Wage (AW), and are therefore not fully comparable with the historical data. Historical GRR indicator measures the average amount of unemployment benefit received after selected spells of unemployment in proportion to the employment income earned before losing the job. All values are calculated before taxes and social security contribution payments. Calculations exclude family benefits, social assitance, housing benefits as well as in-work benefits. Because of these exclusions, the Net Replacement Rates in unemployment may provide a more complete measure of income maintenance than the GRR, especially when considering longer periods of unemployment and/or families with children.

Reference period

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)

Date last updated

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 that could not be updated in February.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 updated in May.

Other data characteristics

1. Calculations refer to a jobseeker aged 40 with an uninterrupted employment record since age of 19 until the job loss.
2. If benefit receipt is subject to activity tests or other behavioural requirements, e.g. active job-search and being available for work, it is assumed that these requirements are met.
3. Calculations are made before considering income tax and social security contribution payments. Social assistance, housing and family benefits are not included. Entitlements refer to a selected month of unemployment and are expressed in annualised terms (i.e. monthly values multiplied by 12), even if the maximum benefit duration is shorter than 12 months.
4. For married couples, if the second adult member is out of work, it is assumed that they are not claiming unemployment benefits, e.g. because they have expired.
5. Calculations for families with children assume that children are 4 and 6 years old. Neither childcare benefits nor childcare costs are considered. Adults are both aged 40 and are assumed to have full work capacity.
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.
10. For more information, visit the project webpage or contact the OECD tax-benefit team.