Employment, Social Affairs & Inclusion

Inactivity trap (esp. second earner case)

Indicator name Inactivity trap (esp. second earner case)
Code C-9b
Detailed definition The total increase in effective tax burden resulting from a transition from labour market inactivity to a full time low-wage job with and without childcare costs as % of gross earnings in new job. Breakdowns by household type (single without children, couple without children, lone parent with two children, two-earner couple with two children) and by wage level.
Source Source: EC-OECD tax-benefit model
SPC portfolio section Overarching - context

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