International comparisons of minimum-wage levels have largely focused on the gross value of
minimum wages, ignoring the effects of taxation on both labour costs and the net income of employees.
This paper presents estimates of the tax burdens facing minimum-wage workers. These are used as a basis
for cross-country comparisons of the net earnings of these workers as well as the cost of employing them.
In addition, results show the evolution of net incomes and labour costs during the 2000-2005 period and
the relative importance of minimum-wage adjustments and...
Minimum Wages, Minimum Labour Costs and the Tax Treatment of Low-Wage Employment
OECD Social, Employment and Migration Working Papers
