This paper investigates the work incentives aspect of the new tax credit called “Prime au travail” introduced by the Quebec government in January 2005. The problem of work incentives is discussed and a review of the literature pertaining to the American, English and French experiences in this matter is presented. The authors observe the impact of the new tax credit on work incentives on several types of households and compare its parameters with those of foreign programs. The results indicate that the important budget increase linked to the replacement of the “APPORT” program by the “prime au travail” program does not necessarily imply that the “welfare to work” transition is encouraged to a greater degree. Moreover, foreign experiences show that our expectations about the impact of the “prime au travail” on work incentives might have to be revised downwards

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