In-work benefits, often in the form of earned income tax credits (EITCs), have become increasingly popular over the last decades. Early versions of in-work benefits in the US, the UK and Ireland, primarily motivated as a poverty alleviation measure, have been followed by a large expansion of in-work benefits in other European countries, stressing employment goals rather than redistributive concerns. This review describes the in-work benefit schemes in a selection of countries across Europe and summarizes the evidence of these schemes. The selected countries are France, the Netherlands, Germany, Belgium, Denmark, Finland and Sweden.
Earned income tax credit EITC Europe tax and benefit system