Low-wage trap
Indicator name | Low-wage trap |
Code | C-9c |
Detailed definition | The percentage of gross earnings which is taxed away through the combined effects of income taxes, social security contributions and any withdrawal of benefits when gross earnings increase from 33% to 67% of average wage. Breakdowns by household type (single person without children, one-earner couple with two children). (Source: EC-OECD tax-benefit model) |
Source | Source: EC-OECD tax-benefit model |
SPC portfolio section | Overarching - context |