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Optimal Redistribution and Monitoring of Labor Effort
Zoutman, Floris; Jacobs, Bas - CESifo - 2014
This paper extends the Mirrlees (1971) model of optimal non-linear income taxation with a monitoring technology that allows the government to verify labor effort at a positive, but non-infinite cost. Monitored individuals receive a penalty, which increases if individuals earn a lower income...
Persistent link: https://www.econbiz.de/10010877903
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Tax Effects, Search Unemployment, and the Choice of Educational Type
Alstadsæter, Annette; Kolm, Ann-Sofie; Larsen, Birthe - CESifo - 2005
educational type with high consumption value and low effort costs. This increases the skill mismatch and aggregate unemployment in …
Persistent link: https://www.econbiz.de/10005766172
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Pigou Meets Mirrlees: On the Irrelevance of Tax Distortions for the Second-Best Pigouvian Tax
Jacobs, Bas; Mooij, Ruud A. de - CESifo - 2011
This paper extends the Mirrlees (1971) model of optimal income redistribution with optimal corrective taxes to internalize consumption externalities. It is demonstrated that the optimal second-best tax on an externality-generating good should not be corrected for the marginal cost of public...
Persistent link: https://www.econbiz.de/10008833932
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How to Deal with Covert Child Labour, and Give Children an Effective Education, in a Poor Developing Country: An Optimal Taxation Problem with Moral Hazard
Cigno, Alessandro - CESifo - 2010
work a child does, are private information, the second-best policy uses a combination of need and merit based education …
Persistent link: https://www.econbiz.de/10008596586
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Efficient Subsidization of Human Capital Accumulation with Overlapping Generations and Endogenous Growth
Richter, Wolfram F.; Braun, Christoph - CESifo - 2010
This paper studies second best policies for education, saving, and labour in an OLG model in which endogenous growth … equilibria are inefficient. The inefficiency is exacerbated if selfish individuals externalize the positive effect of education … on descendents’ productivity. It is shown to be second best to subsidize education even relative to the first best if the …
Persistent link: https://www.econbiz.de/10008572520
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Deserving Poor and the Desirability of Minimum Wage Rules
Blumkin, Tomer; Danziger, Leif - CESifo - 2014
In this paper we provide a novel justification for the use of minimum wage rules to supplement the optimal tax-and-transfer system. We demonstrate that if labor supply decisions are concentrated along the intensive margin and employment is efficiently rationed, a minimum wage rule can be...
Persistent link: https://www.econbiz.de/10010877848
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Spillover Effects of Minimum Wages: Theory and Experimental Evidence
Dittrich, Marcus; Knabe, Andreas; Leipold, Kristina - CESifo - 2011
We study the spillover effects of minimum wages in a laboratory experiment. In a bilateral firm-worker bargaining setting, we find that the introduction of a minimum wage exerts upward pressure on wages even if the minimum wage is too low to be a binding restriction. Furthermore, raising the...
Persistent link: https://www.econbiz.de/10009294100
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Wage and Employment Effects of Non-Binding Minimum Wages
Dittrich, Marcus; Knabe, Andreas - CESifo - 2010
Common wisdom holds that the introduction of a non-binding minimum wage is irrelevant for actual wages and employment. Empirical and experimental research, however, has shown that the introduction of a minimum wage can raise even those wages that were already above the new minimum wage. In this...
Persistent link: https://www.econbiz.de/10008511593
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Endogenous Monopsony and the Perverse Effect of the Minimum Wage in Small Firms
Danziger, Leif - CESifo - 2009
The minimum wage rate has been introduced in many countries as a means of alleviating the poverty of the working poor. This paper shows, however, that an imperfectly enforced minimum wage rate causes small firms to face an upward-sloping labor supply schedule. Since this turns these firms into...
Persistent link: https://www.econbiz.de/10005010148
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Noncompliance and the Effects of the Minimum Wage on Hours and Welfare in Competitive Labor Markets
Danziger, Leif - CESifo - 2009
This paper shows that increases in the minimum wage rate can have ambiguous effects on the working hours and welfare of employed workers in competitive labor markets. The reason is that employers may not comply with the minimum wage legislation and instead pay a lower subminimum wage rate. If...
Persistent link: https://www.econbiz.de/10008572576