Term:
Elasticity of income after tax
Definition:
Shows percentage change in after-tax income following a 1per cent change of income before tax (defined more precisely as one minus a marginal tax rate divided by one minus a corresponding average tax rate).
Domain:
Finance
Source:
OECD, 2007, Taxing Wages - 2005/2006, 2006 Edition, OECD, Paris
