High labour costs may also represent a barrier to hiring young people. In 2009, the tax wedge on earnings equivalent to two-thirds of the average wage, considered to be the low-wage threshold, was 38% in Europe and 33% for the OECD average (Table 5.2).2 The tax wedge on these low-wage earners decreased, however, between 2000 and 2009, even without taking into account the exemptions from social security contributions for low-pay employment. In all OECD countries, the tax wedge on average earnings was higher than that on low earnings.