Financial Incentives to Work

Authors: Michael Savage , Tim Callan , John R Walsh , Maxime Bercholz , Mark Regan

Research Areas: Taxation, Welfare and Pensions


Tax and welfare policies must strike a balance between providing income support to those in need and maintaining a financial incentive to work. This strand of the SWITCH research programme focuses mainly on the latter objective, identifying the financial incentive to work for individuals and families in Ireland and how it is affected by actual and proposed policy changes. Research in this area focuses both on the financial incentive to be in paid employment, often measured by replacement rates and participation tax rates, as well as the financial incentive to progress in employment, often measured by marginal effective tax rates.

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