Lehmann, Etienne; Parmentier, Alexis; Linden, Bruno van der - Groupement de Recherche en Économie Quantitative … - 2008
This paper characterizes the optimal redistributive taxation when individuals are heterogeneous in two exogenous dimensions: their skills and their values of non-market activities. Search-matching frictions on the labor markets create unemployment. Wages, labor demand and participation are...