low-wage trap
Indicator name | low-wage trap |
Code | SI-C9c |
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 | Household type (single person without children; one-earner couple with two children) |
Source | EC/OECD tax-benefit model |
SPC portfolio section | Social inclusion – context |