Employers of low-skilled labour capture $0.72 (of which about 40% from single mothers and the rest from ineligible workers whose after-tax incomes fall). The net transfer to low-skilled workers is about $0.28 per dollar spent. However, if firms cannot shift the entire tax burden onto workers (for example, because of minimum wages or strong trade unions), higher taxes will reduce labour demand. Several empirical studies support this view (e.g. Belot and van Ours, 2004 and Bassanini and Duval, 2006).