Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/318633 
Year of Publication: 
2024
Citation: 
[Journal:] Empirica [ISSN:] 1573-6911 [Volume:] 52 [Issue:] 1 [Publisher:] Springer US [Place:] New York, NY [Year:] 2024 [Pages:] 39-62
Publisher: 
Springer US, New York, NY
Abstract: 
This paper analyses incentives to take up work or to increase working hours within the Austrian tax and benefit system. We analyze the monetary work incentives for a variety of family constellations (singles, single parents, families with children) with different incomes from dependent employment, when receiving unemployment benefits, and in the system of means-tested minimum income. Moreover, the effect of different earning ceilings (childcare and unemployment) and childcare costs is additionally investigated. Insufficient and, therefore, privately provided childcare is viewed as a missing component of the benefit system. The Austrian tax and benefit system is designed to be incentive-compatible for singles. Only marginal employment without deductions in the event of unemployment creates a negative incentive to expand employment beyond this extent. However, raising children creates negative monetary incentives. On the one hand, through the upper limits on additional earnings during times of childcare allowance, but especially when childcare costs arise.
Subjects: 
Monetary work incentives
Austrian tax and benefit system
Microsimulation
JEL: 
D31
J22
J31
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.