We have the highest gap in the OECD between our average and marginal income tax wedge.
Anecdotally I know a high number of skilled people who choose to work part time rather than fulltime.
With a marginal tax rate of over 50% and high childcare costs the net return for a parent working a full day rather than a half day is very small.
Does that contribute to the shortages we see in Medicine, Nursing, Speech Therapists etc?
A GP working morning only will earn €80-€100k a year. If they work a full day they'll earn an extra €80-€100k a year but will net €40-€50k a year. If they have 2 children their childcare costs will be around €20k a year. Why would they bother working full time?
Anecdotally I know a high number of skilled people who choose to work part time rather than fulltime.
With a marginal tax rate of over 50% and high childcare costs the net return for a parent working a full day rather than a half day is very small.
Does that contribute to the shortages we see in Medicine, Nursing, Speech Therapists etc?
A GP working morning only will earn €80-€100k a year. If they work a full day they'll earn an extra €80-€100k a year but will net €40-€50k a year. If they have 2 children their childcare costs will be around €20k a year. Why would they bother working full time?