Research and analysis

Welfare-to-Work, Wages and Wage Growth

This paper considers how in-work income support programmes might impact on individual wage growth

From:
HM Revenue & Customs
Published
20 May 2004

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Details

HM Revenue and Customs Working Paper 3: Welfare-to-Work, wages and wage growth

In-work welfare programmes aim to improve incentives for people without work to move into employment. From 1998 to 2003, in the United Kingdom, the Working Families鈥� Tax Credit (WFTC) has been one such income supplement programme.

This paper considers how the incentive effects of WFTC would impact on wages, and the growth in wages, of a given individual.

The WFTC was part of a range of policies that attempt to 鈥渕ake work pay鈥�, but its proximate aim was to provide earnings supplementation for working low-wage families with children and so reduce child poverty.

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Published 20 May 2004

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