Jacquet, Laurence; Lehmann, Etienne; Van der Linden, Bruno - 2012
This paper characterizes the optimal redistributive tax schedule in a matching unemployment framework where (voluntary …) nonparticipation and (involuntary) unemployment are endogenous. The optimal employment tax rate is given by an inverse employment … competitive model with endogenous participation only. -- optimal taxation ; labor market frictions ; unemployment ; Kalai solution …