Breaking Down the Welfare Wall

This commentary explores the concept of the ‘welfare wall’ – the obstacles that welfare recipients face when they try to enter or re-enter the labour market.  The welfare wall refers to direct taxes (in the form of income taxes, payroll taxes and the welfare ‘taxback’) and indirect taxes (as represented by the loss of refundable credits with rising income).  The loss of income-in-kind, such as supplementary health benefits, is another major barrier to labour force participation.  The commentary considers various options for breaking down the welfare wall.

ISBN – 1-895796-07-5