but labour taxation was especially high on lowwage workers with a tax wedge about six percentage points above the oecd average for minimum wage earners figure panel b this depends on a number of factors namely i the presence of a net wage floor ie a binding minimum wage ii the extent to which workers value social protection or public services provided by taxes iii the relative bargaining power of employers and employees and iv the relative generosity of possible replacement revenues oecd i the effects of labour taxes on labour demand are thus likely to be particularly large at low wage levels