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Taxation, inequality and the allocation of talent

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This paper examines the implications of income redistribution on human capital accumulation and income inequality, presenting a model where human capital investment is indivisible and agents differ in economic opportunity as well as intellectual ability. It is shown that the impact of...

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Tax effects on work activity, industry mix and shadow economy size : evidence from rich-country comparisons

Davis, Steven J. (contributor); … - 2004 - [Elektronische Ressource]

Guided by a simple theory of task assignment and time allocation, we investigate the long run response to national … differences in tax rates on labor income, payrolls and consumption. The theory implies that higher tax rates reduce work time in …

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