Review article
THE IMPACT OF TAX AND SOCIAL BENEFIT SYSTEM REFORMS ON WORK INCENTIVES IN CROATIA: 2013-2018.
Slavko Bezeredi
orcid.org/0000-0002-9653-0289
; Institut za javne financije, Zagreb, Hrvatska
Abstract
Social benefit systems can have negative financial incentives to work, especially for those groups of people who lose generous amounts of social benefits when they move from unemployment to employment. The aim of this paper is to analyze the impact of the reforms of tax-benefit systems introduced in the period 2013-2018 on work incentives of unemployed persons in Croatia for selected types of hypothetical households and to conduct a comparative analysis of Croatia with other EU countries. As the main indicator of work incentives the participation tax rate is used, which is estimated using EUROMOD and OECD tax-benefit models. The results show that some types of households have very low work incentives in Croatia, namely, lone parents with two children and one-earner married couples with two children. Furthermore, the comparative analysis reveals that for the mentioned household types, Croatia is among the countries with the lowest incentives to work.
Keywords
work incentives; participation tax rate; EUROMOD; Croatia
Hrčak ID:
230543
URI
Publication date:
19.12.2019.
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