Effective Tax Rates On Taking Up Work When Claiming Unemployment Benefits And Using Childcare Services

This indicator measures the financial disincentives to participate in the labour market for a jobseeker claiming unemployment benefits. It calculates the proportion of earnings that are lost to either higher taxes, lower benefits and net childcare costs when a parent with young children takes up full-time employment and uses full-time centre-based childcare. This indicators is calculated assuming that the jobseeker claims unemployment insurance and/or unemployment assistance benefits when s/he is out of work.

The calculations assume 2 children aged 2 and 3, both attending a childcare centre full-time.