A Good Time for Making Work Pay? Taking Stock of In-Work Benefits and Related Measures across the OECD

This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2  ECO/WKP(2017)85 INCOME REDISTRIBUTION THROUGH TAXES AND TRANSFERS ACROSS OECD COUNTRIES Unclassified OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.

mentioning

confidence: 99%

Income redistribution through taxes and transfers across OECD countries

Causa¹,

Hermansen²

2017

“…An entirely unconditional basic income would also sever links between the rights and responsibilities of jobseekers. In countries where transfer systems perform well replacing existing systems with a universal basic income would result in a very large reduction in progressivity and losses in benefits for many poor households (IMF, 2017 [32]). To date, no country has put a basic income in place as a principal pillar of support for the working-age population.…”

Section: Universal Basic Incomementioning

confidence: 99%

Increasing inclusiveness for women, youth and seniors in Canada

Barker¹

2018

This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2 │ ECO/WKP(2018)67 INCREASING INCLUSIVENESS FOR WOMEN, YOUTH AND SENIORS IN CANADA Unclassified ECO Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.

“…While no thorough evaluation of the Chilean scheme is available, OECD experience with in-work benefits suggests that they are associated with positive, albeit small, employment effects. When targeted on family income, as in Chile, they can also be a cost-effective instrument to reduce income inequality, in particular when the income distribution is wide (Immervoll and Pearson, 2009). In-work benefits can have a negative effect on incentives of second earners when they are targeted on family income.…”

Section: What Role For In-work Benefits In Chile?mentioning

confidence: 99%

Reducing Poverty in Chile

Brandt

2012

Notwithstanding impressive progress, poverty and inequality remain high in Chile in OECD comparison, and the tax-benefit system does little to improve on this. The government plans to introduce a new cash transfer for the poor, the Ingreso Ético Familiar. This is a welcome initiative. However, the transfer will be modest by OECD standards, at least initially, and it will be quite narrowly targeted at families living in extreme poverty. Over time, the government should consider increasing the size of this transfer and opening it to a wider range of beneficiaries through gradual benefit withdrawal. Strong support for the poor to find jobs of decent quality will be key to help them overcome poverty in a sustainable way. Ingreso Ético Familiar will come with an employment programme for beneficiaries. This should build on the existing infrastructure of active labour market policies, which will need to improve at the same time. The government should strengthen the capacity of local labour offices and use the current evaluation of training programmes to retain only those of proven effectiveness, while focusing them more on lowskilled workers and the unemployed. Strengthening unemployment benefits, while limiting severance pay, would make employment protection more effective and do more to avoid labour market duality. This Working Paper relates to the 2012 OECD Economic Survey of Chile (www.oecd.org/eco/surveys/chile).