Bastani, Spencer; Blumkin, Tomer; Micheletto, Luca - 2022
are neither observed by the government nor by prospective employers. The dual role of income taxation in redistributing … income and affecting signaling incentives is analyzed, as well as the role of tax systems that supplement income taxation … with direct taxes on the signals. We show how taxation can be used to achieve predistribution (i.e., redistribution through …