Impact of Tax and Benefit System on Wages of It Sector Employees

Examining the Impact of Tax and Benefit System on Wages of IT Sector Employees

Abstract

The impact of the tax and benefit system on work incentives is one ofthe most salient policy issues in labor and public economics. The policy changeextended the coverage of a compulsory, in-work and payroll tax financed healthinsurance program to the dependent children of private sector salaried workers,but only to full-time registered workers – those in jobs complying with payrolltax and social security contribution requirements.