Tax and Benefit Systems and the Work Choices by Parents

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Abstract:

This chapter discusses key characteristics of tax and benefit systems across the OECD, and the support they provide to families and children. The chapter looks at spending on family benefits and its implications for the reconciliation of work and family life, and the degree of targeting of public support on low‐income groups. It then considers how tax/benefit systems alter financial incentives to work for second earners in couple families and how they affect the distribution of paid work in these families. The chapter also discusses how tax/benefit systems may provide sole parents with financial incentives to work, and how differences in the general policy stance towards sole parents contribute to marked differences in benefit dependency among these families across OECD countries.

Document Type: Review Article

Publication date: October 1, 2007

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