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Benefits and Wages 2007

OECD Indicators

image of Benefits and Wages 2007

Launched in 1998, the latest edition of this series (formerly entitled Benefit Systems and Work Incentives) provides detailed descriptions of all cash benefits available to those in and out of work as well as the taxes they are liable to pay across OECD countries. A special chapter also compares childcare costs across countries and the financial work incentives faced by parents of young children. Using the OECD tax-benefit models, total household incomes and their components are calculated for a range of family types and employment situations. The results are used to examine financial incentives to work, either part-time or full-time, as well as the extent to which social benefits prevent income poverty for those without a job. This volume presents results for 2005 and earlier years.

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Tax and Benefit-System Reforms

The story of reforms to the tax and benefit system in OECD countries in recent years has been dominated by two main objectives: to strive to increase incentives to work, and to increase family incomes, especially where children are present. Neither objective is new, but whereas in previous years other objectives have also played a prominent role (for example, attempts to reduce the fiscal cost of the benefit system) these two objectives now explain a very large proportion of reform efforts. And the dilemma facing policymakers is that the two objectives are potentially in tension with one another.

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