Jacquet, Laurence; Lehmann, Etienne; Linden, Bruno - In: Social Choice and Welfare 42 (2014) 2, pp. 381-402
This paper characterizes the optimal redistributive tax schedule in a search–matching framework where (voluntary) nonparticipation and (involuntary) unemployment are endogenous and wages are determined by proportional bargaining à la Kalai. The optimal employment tax rate is given by an...