Financial incentives

Research looking at how financial incentives can influence behaviour in relation to benefits.

These research reports and documents have been released as part of a programme of work to develop a research archive and improve access to historic research previously not released by the Ministry. We will potentially be adding to this page over time.

The effectiveness of financial incentives

2010 | ISBN 978-0-9951242-0-2

This brief evaluates the effectiveness of financial incentives, such as in-work benefits, minimum wages and wage subsidies, used to address low employment rates and in-work poverty.

Financial incentives can be effective at ‘making work pay’ by creating an appreciable income gap between a benefit and paid employment, taking into account the costs of working.

The quantitative impacts of financial incentives for non-work tested groups

2012 | ISBN 978-0-9951244-2-4

This brief provides an overview of the quantitative impact of types of financial incentives on the off-benefit outcomes of non-work tested groups.

As financial incentives are rarely delivered in isolation, it can be difficult to isolate the quantitative impacts.