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A working paper with the above title was posted to the ESRI website on 22 May 2012. ESRI working papers are un-refereed work-in-progress by researchers who are solely responsible for the content and views expressed. Their purpose is to obtain feedback from other researchers and academics while the research is underway in order to help ensure that the paper meets the accepted standards for academic research. When the conclusion of this working paper was publicised in the media, the Director asked senior ESRI researchers to examine the paper. They found that the underlying analysis required major revision. Given the importance of the issue from an economic and social policy perspective, the decision to withdraw the paper was then taken, so that misleading conclusions, perceived as being in the name of the ESRI, should not remain on the ESRI website. The ESRI researchers have prepared a note on the original paper and this has been passed to the authors and is published below. A major study of work incentives, using up-to-date data, has been underway in the Institute since February, as part of its ongoing programme of research on taxation and welfare. Results will be published later this year.
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