We provide a detailed comparison of financial incentives to work resulting from the tax and benefit systems in three countries: the United Kingdom, Germany and Poland. Financial incentives to work are compared using a range of example family profiles under different assumptions concerning benefit eligibility, wage levels and work intensity. Consequences of the different design of taxes and benefits are discussed in detail from the perspective of attractiveness of employment.

Keywords: work incentives, replacement ratios, tax and benefit systems

  Peter Haan, Leszek Morawski, Michał Myck - Taxes, Benefits and Financial Incentives to Work: The United Kingdom, Germany and Poland Compared - plik pdf; (3.3 MB)